DebtEliminationTips

Many people gets caught behind the8 ball and then before you know it your so knee deep in debt you don’t know what to do. Below I document the start of a process of debt elimination that my company is assisting my newest client . We currently have 10 credit cards to deal with with a total of 80K in debt to deal with currently, for most this seems like an extreme amount and an impossible task. I am here to tell and show you over time that it can be done and a lot easier than you think.

A quick note about this process, you must dedicate your resources to fixing this issue or you will not be successful. You cannot attack and win the war on debt unless you are very consistent, and be willing to make the proper changes required to succeed. Below I will document the beginning numbers from my client that we determined through the discovery phase , each month we will update them so you can follow the progress.

Debt amounts:

13023.89

12672.49

12214.40

9882.18

9394.17

5682.87

5384

4227.73

3770.73

3767.13

These are the 10 accounts that will be part of the debt elimination service for my customer. Currently the payments on all these accounts are over 1800 a month of which almost 1000 of it are being wasted in interest. We have made some key changes in each of these accounts to start the process of making these accounts more efficient. Every month we will see increased performance in his plan and soon we will see the balances systematically being eliminated.

Please feel free to follow up on the next post once we receive a series of number updates on these accounts. The first months updates will be minor and may not have effected all accounts yet, this typically can happen as you do need to have the financials resources to correct the inefficiency in your accounts. Each month following this we will make minor but important adjustments  to increase performance in the process.

Stayed tuned for next months update an additional comments on the progress and success in our debt elimination process. If anyone would like to contact me directly or have any questions about this process or in general you may reach me here: gwebber1@gmail.com

This post was created by: http://www.debt-elimination-services.net

The debate continues …. What is the best way to get out of debt. Debt elimination by far has the most punch towards debt reduction than any other methods available. This obvious excludes bankruptcy which is in a whole different bracket . Below I will discuss the different methods and the reasons they do not compare to a debt elimination plan.

Debt Management , in itself debt management is a good plan but in most cases you are paying out a monthly fee that you would better serve towards your own debt. Be very careful with this setup as in most cases your accounts will get closed. This is really not a good long term plan as your credit will take a hit and you will loose the ability of using your current cards for emergency purposes.

Debt consolidation is the most over used solution in the debt game and in at least 75% of the cases does not provide the desired effect. The solution itself looks attractive from the outside, lower payment, less bills to pay . In actuality its the same amount of debt that cost you less monthly but over all you are still loosing the same amount in interest and while it quietly drains your bank account. Debt consolidation as the first step in any debt solution is a mistake, however if you understand how to make your payment efficient first then by all means consolidate.

Debt Elimination by far will out perform any of these solutions as its pure design is to efficiently and swiftly eliminate your debt systematically. The design of most of the other solutions provide you with a way to maintain your debts with a very slow decline. The process of debt elimination if followed properly will provide you better efficiency across all your accounts, meaning your total costs go down and your debts will disappear faster.

Attempting to eliminate your debt can be done at any income level , the only thing you will have to loose is not starting the process. The more efficiency you build the more powerful the program will become, and will show you performance like you have never seen before. You will no longer be focusing on ways to passive your debt you will be looking at ways to make it work more efficient.

Debt elimination is a goal that every household should be looking towards, it will help economies stay healthy and vibrant.

This post was provided by: http://www.debt-elimination-services.net

Dealing with debt can be overwhelming at times , so the questions is should you do it yourself or contact a Financial Planner specializing in debt. This would really depend on several factors:

• Are you making progress (Reducing your principal )
• Can you locate a Financial Planner with reasonable rates

Believe it or not all services are made equal from the stand point of the services provided, some decision will be based on cost or possibly the level of services. The cheapest service may not be the best service, and likewise the most expensive service may not be the best.

It will be best to weigh them against each other using this criteria :

• What guarantees are you being offered ?
• What are your total costs ( Monthly re-occuring costs are not recommended)
• What is their specialty ( You would want a financial analyst who specializes in debt)

 Why would you pick a Financial Planner over a do it yourself method:

A good financial planner will put you on a quick path to debt reduction, proper execution while trying to eliminate debt is essential. Where as using the do it yourself method you may think you are on the right path not knowing if there is a better way. There are many ways for you to accelerate the payoff of your debts and a Financial Planner should help you discover which method works best for you.

Should you actually pay extra on all your cards ( old school thought and is not efficient) , should you pay the highest interest card ( you will be chasing your credit cards forever) , or do you pay the credit card with the lowest balance. These are the decisions you need to get right in order for you to be able to efficiently eliminate debt quickly. Doing things using any of the above methods will produce you some results but will they be efficient , or can you make changes that will increase the efficiency of every dollar you pay towards debt.

AS an example most of my clients that I take on are paying all of their bills on time but they are not making any progress in reducing their principal balances, WHY you ask… Because the way they are paying is VERY inefficient . The amount of actual principal balance each month is about 50% of their payment, so if you are OK with giving 50% of your money each payment then don’t make any changes. I challenge each and every one of you to fill out my financial form on my site and see for your selves how you are doing, making 2 very small changes can drastically change how much principal you pay each month.

So in conclusion to this subject if you are not making significant progress in your war on debt then you should consider a change and get some help, it can save you so much money that you WILL be giving away if you don’t make a change now. Evaluate each debt solution based on what you are getting not what you are giving them, I do not recommend any services that require a monthly fee, if you can afford a monthly fee you would be better served applying that directly to your debt.

Keep looking as I write additional posts about debt elimination and many other topics related to debt, freeing yourself from debt is the only way to secure a healthy retirement.

This post was created http://www.debt-elimination-services.net

Credit card companies are very good at doing one thing , keeping you in debt for as long as possible. But if you know what to watch out for and how to get around them you will save yourselves a lot of money and get out of debt faster.

Trick#1 Offering for you to transfer a balance to your card , when you already have a higher interest rate balances currently on the card.  Why this is a big deal is because of the way the credit card companies handle payments. Now when you make a payment it pays off the lower interest balance first before the ones with higher interest rates. Now the only one that that benefits is the credit card, as they will continue to collect higher rates on the original balance until the lower rate balance is gone .

How would you get around this issue, only transfer a balance to a card with no balance or one that you can transfer the entire balance to and this issue will be avoided all together. Not that transfering for a better rate is a bad thing but if you do it improperly you will actually end up spending more in the end.

Trick#2 The funny thing is my credit card just tried this on me, they sent me a deal to make certain debts split off on the card to pay on those first until they are paid off, sounds good right.? Well again in hind sight it does the same thing as trick #1 . It takes you focus away from your actual balance and allows them to sock you with lots of interest on everything else.

Trick#3 This is not actually a trick as it is a greedy measure to ensure they stay profitable. Never ever ever make your payment even a day late. they will sock you with the most interest that they can legally causing you to not be able to make an efficient payment. There are ways to limit the amount of interest you pay on your credit cards, this is the practice I show all my clients to allow them to save money regardless of interest rates.

Trick# 4 Credit card companies will periodically offer you the ability to go a month without making a payment , do not fall for this technique and please make sure to go ahead and make your payment. This gives them another 30 days of interest on your full amount owed..  so bottom line don’t do it.

These are very common things credit cards will do to keep you in debt for as long as possible, but you can fight back by planning things correctly. Planning a proper debt elimination , debt consolidation, debt reduction plan will go a long way in reducing your debt fast and increasing your credit.

This post was brought to you by http://www.debt-elimination-services.net -updated

THe aged old question .. Why cant I get a loan and why is my credit score so low! .

In today’s economy it will be very important for you to maintain a good credit score. Even if you do not plan on using it any time soon you will need it eventually. The cleaner you keep your credit the easier it will be to get financing when needed. Trying to correct an issue with your credit at the last minute will not benefit you as much as keeping your credit strong. Lets discuss how it we can go about getting this done and hopefully you can apply this to your situation.

We are going to use the example of someone that has a credit score of lets say 650, this is not terrible but it does need work to be able to obtain decent rates. Increasing this rate may even be able to help him with his current debts like credit cards , with better rates they can attempt to obtain lower rates.  There are a number of factors that go into your credit score and to raise it you will need to abide by these rules to correct your credit score.

So lets say for instance you have 4 credit accounts, a car payment, a first and second mortgage .

First Card is a Limit of 6000.00 and a balance of 5000.00 with a minimum payment 170.00 a month. Your second card is a limit of 4000.00 and a balance of 2300.00 with a minimum payment of 65.00 a month. The third card that you have is one with a limit of 4000.00 and a balance of 3000.00 with a minimum payment of 122.00 a month . Finally the last card has a limit of  3000.00 and a balance of 1500.00 with a minimum payment of 35.00 a month. Now considering thes amounts there are some very pertinent issues that we should be addressing but which order would we do them in and how and why.

Here is the first rule of thumb that you should be aware of and start focusing on currently , no balance on any credit account  should be more than 40% of your credit limit. So for 6000.00 your maximum balance should be 2400, 4000.00 should be 1600.00 and 3000.00 should be 1200.00. this will directly impact your credit scores both positive and negative so the question is how will address this and which order will you take to fix it.

Glad you had asked and I will gladly supply you my input to making your credit score improve. I always start at the lowest balance and I do this for reasons which I will explain . How you handle your debt will be directly reflected in your credit scores(Remember this statement always). I start with the lowest balance because we will be attempting to accelerate the payoff of this account , the more extra principal we will be applying will take a bigger bite out of a smaller balance and obtain our goals faster.  So as in our example our lowest balance we need to eliminate 300.00 dollars to get it to the 40% ratio on that account . ow even once we get there we are going to want to continue forward momentum on that and all accounts, but only pay minimum amounts on all accounts ut the one we are concentrating on reducing. Once we repeat this process on each credit account and get them at 40% we will shift gears and blow all the rest of the debt out in order. So your first goal that you need to work on is reducing your balances below 40% and then continue on with these additional steps.

Now even though 40% is your primary goal , it is sooooooooooooooooo important for you to pay your bills on time . Make sure you pay your bills so they will post at least a week early , and if you are going to be making extra payments on the account you are focusing on above the minimum make them when you have them. What I mean is do not wait until your regular scheduled payment , this is very important because every time you reduce your balance you are also reducing the amount you pay interest on for that month. So if you reduce it by 10.00 in the first week then you pay 3 weeks of less interest that the ten dollars makes up in dollars.  ow this techniques will give you an extra principal boost at the end of the month over paying it with your regular payment.

Following these steps will help you raise your credit scores and best off all help you get out of debt. Be persistent and consistent with your payments and will have remarkeable results.

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There are many steps you will take to gaurantee results when trying to eliminate your debt , however one of the most important steps you will have to take is creating a household budget. As a matter of fact it is one of the most important step you will take .

To eliminate your debt you will need to consider the following when it pertains to yuor goals. How much extra money on top of your bills and expenses do you actually have to tackle your debt.? Are you actually spending more money per month then you are making , this could also help you isolate steps you need to take to meet your goals.

Step One: Using paper, or your favorite word processor /spreadshhet program, document every dime you are spending . Do not exclude anything that you are spending money on currently, even if you need a misc catagory to cover items that do not fall into any specific catagory.

Step Two: track your budget monthly so you know what financial numbers you can work with on a regular basis. If you have money left over we will discuss what to do with it in a later post. However if you find that you are falling short , having to put off paying bills, or have very little to spare at the end of the month . Use your budget to make adjustments as needed, these may not be easy decisions but will be necessary.

This should get you started with the first and certainly most important steps towards financail and debt freedom, do not take these lightly as your goals will be effected. In the event you need assistance with preparing a budget and putting your debt elimination plan into action , then feel free to contact me through my site and I would happy to assist you.

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