Home  Top Stories  Sports  Entertainment  Health News  Business  Personal Finance 
Real Estate  Business Finance  Insurance  Consulting 
Tax News  Forum
 

Writers






 


Featured Articles







BUSINESS



 




 

Home and Leisure Article

 

How to Get out of Debt - Debt Consolidation and Ideas - Avoid Bankruptcy and Reduce Payments Using Credit Counseling Agencies

June 7th 2006

How to Get out of Debt - Debt Consolidation and Ideas - Avoid Bankruptcy and Reduce Payments Using Credit Counseling Agencies

Create a Plan First

Over the past decade many Americans have found themselves in debt.  Some debtors have run-up their credit cards on consumer products, while others were hit with a medical emergency that placed them in a financial bind.  There are several options for reducing and eliminating debt, however you will not eliminate your debt overnight. 

This may sound simple, but the first thing you need to do is develop a plan.  You have three options: 1) Make more money, 2) spend less or 3) make more while spending less. On a recent Oprah Winfrey series of shows called The Debt Diet, experts agreed the best approach is to make more and spend less.

 

Don’t get me wrong, I am not saying this is an easy thing to do. Part time jobs or a sideline business were the most common methods given for making extra money.  Cutting expenses is just as hard.  You should investigate cutting your down or eliminating your Cable TV.  Maybe eat out less frequently.  Also, make sure you are getting a good deal on your car insurance.   There is only one better feeling than saving money, and that is making more.

Another alternative is a debt consolidation loan. There are three basic options you should consider.  Many experts advise clients to stay away from placing unsecured debt into a secured home loan, and for good reason.  But this option does have some advantages. 

First off, the loan payments can be stretched out over an extended period of time.  This will likely give you the lowest monthly payments. You will also get a tax deduction.  You may want to talk to your tax advisor before making that decision.

 

Another option you should consider first is a non-secured debt consolidation loan.  Many credit card companies offer zero-interest promotions.  Keep all of these promotions; don’t throw them out.  You can also call your credit card company and ask them to lower your interest rate.  This does not always work, but sometimes it does.  If the operator says no, ask to speak to the supervisor.  Tell them you are considering a zero interest promotion (or a low interest rate promotion).  Oprah had testimonials that proved this technique can work.

Carrie Reeder, in an article on isnare.com, suggests establishing a relationship with a debt management or credit counseling service.  According to Reeder, these agencies may help to improve your credit rating by contacting your creditors and establishing better terms and rates on your credit cards and loans.

Again, the most important thing you should do is develop a plan.  Determine the worst thing that can happen and then develop a plan to prevent it.  This is the cornerstone of Dale Carnegie’s “How to Stop Worrying and Start Living” book and seminar.  Reading this book and following the advice may help you sleep at night.

 
 
Comment on this Article at our Forum

Submit your own Article

Personal Finance News Special Topic

  RSS Personal Finance News Feed

  RSS Feed to our Business News

  RSS Feed to all of our News

Add to Google Add to My AOL
Add to My Yahoo! Subscribe with Pluck RSS reader
Subscribe in NewsGator Online
Add this feed to Your C-Net
Subscribe in Bloglines Subscribe in Rojo

Dan Wilson
Best Syndication

Books on  Credit Card Debt

Keywords and misspelling: investmint investing intesters socks Berkshire Hathaway hathway birkshire coke gillet gillette gilette Buffet Bufett


Google
 
Web BestSyndication.com

About   Contact   Site Map

Copyright 2005 Best Syndication                   Last Updated Saturday, July 10, 2010 09:51 PM