7 Steps To Get Out Of Debt

In Dr. Robert D. Manning’s book, Credit Card Nation, he says, Americans once understood the difference between good debt and bad debt.

We had Benjamin Franklin tell us about the great virtue of frugality and thrift and industry. ‘A penny saved is a penny earned.’ Dr. Manning points to the conscious effort that banks undertook to reshape Americans attitudes and values in order to boost their profits. “Banks had a multi-billion dollar strategy that led to the Nike ‘Just do it’ consumptionism-the effort to get the new generation to reject those old school values.’

7 Steps To Get Out Of Debt

1. Decide! Make a conscious decision to get out of debt.

2. Target What You Owe. Focus on paying off your debt with the highest interest rate first.

3. Pay More Than The Minimum. When it comes to credit cards paying less isn’t better. Companies calculate your minimum payments to lengthen the time you have to pay.

4. Stop Using Your Credit Cards. If you are tied up in debt, you don’t need the continual use of credit cards. Perhaps you should keep at least one card for emergencies. But guard against a moment of weakness. Those rainbow color platform sandals and new ipad, do not count as an emergency.

5. Keep Track Of What You Spend. It’s easy to overspend when you’re not watching where the dollars and cents are going. Hold on to your receipts as a means to keep track of what you are spending. At the end of a week or month, you will know where your money is going.

6. Preserve Your Home Equity. People have lost equity in their most prized possession. Billions has been withdrawn from homes in recent years to pay off debts. But many fall back into debt again. Only this time, the safety net of equity that they had stored up in their home is now gone.

7. Get The Help You Need. Debt can be habitual. It is as additive as alcohol or drugs. Some continue to spend, even as their debt accumulates. If this describes you, don’t just shrug it off. Help is available.

Available Resources

www.pay-off-debt-now.com is a one stop shop of information for those facing a debt crisis. There are pages of resources, referrals, and money management tools to assist you. You can find advice on credit cards, loans, and ways to avoid bankruptcy.

www.ftc.gov The Federal Trade Commission offers consumers advice on credit counselors. It lists things that you should look out for, when being represented by a debt consolidation company. People considering debt management plans need to be equip with information to protect themselves against being mislead by credit counseling businesses. The government agency is an advocate for the consumer. It informs you to what your rights are under the law.

Category: Get Out Of Debt