Eliminate Debt - Create Wealth

How to Attract Wealth in Life - Simple Ways You Can Practice Everyday

2009-09-29T23:47:00.001-04:00

Do you sometimes think about driving that car or having that luxurious vacation in some tropical beach, or wish you have that grand house celebrities have? Do you wish you know how to attract wealth and abundance in life? Of course, money is not everything is this world but somehow, it can give us convenience, good life, and in a way, it helps us ease our worries on many things.

Like attracting success in career, good health, love and luck, you can also attract wealth in your life. The power of the mind actually plays a great role in attracting the things that happen in your life. Like featured in the Law of Attraction, your thoughts can play a major role on how to attract wealth.

Attracting abundance in life can however be a work of both the mind and the hands. Of course, you just do not want to dream about it, but you also have to do your share.

(1) Have positive thoughts. Be thankful for what you have. Before you think of what you desperately want to have in your life, like that luxurious car or that nice grand mansion, think about what you have. Do not think of them as not being enough. The more you think that you don't have enough, the more you will become desperate and you are building negative thoughts in your mind.

The law of attraction works by having positive thoughts. If you want to attract wealth and abundance, learn to think positively of what you have. Be thankful about it. Indeed, it is difficult because one part of you may think about the desperation to have something more, but you need to keep in mind that the more desperate you are, the more attraction will not work for you.

(2) Manage your finances. Like mentioned above, in attracting wealth into your life, you also have to work for it. Manage your wealth and money. Do not spend more than what you earn, or else, you are ruining your chances of attracting money and wealth.

(3) Get moving. Take risk. Do what you think you can do. Prove to people that you can do what they think you cannot. Sometimes we think about failure even if still haven't tried it yet, but if you build that confidence on yourself, you can work on that thing you have been wanting to do. Do not be lazy. You cannot attract wealth and abundance in your life if you are on your couch the whole day dreaming about money.

(4) Envision yourself with wealth. Train your mind to think about having the wealth and abundance all around you. However, it is important not to be dragged into the thought of wanting the money so badly and the self-pity that you do not have anything. Be thankful of what you have at the same time think that you can achieve the life of abundance and wealth. Believe that you can achieve what you dream of.

How to attract wealth can be difficult but, like in the law of attraction, it can be done with the proper attitude.

Carolyn Anderson is a freelance author who studies the law of attraction. To learn more about attracting things you want in your life through the law of attraction, check out Attractor Genie. Also check out Quantum Cookbook, where you can find steps to manifest anything you want in your life.

Get Out of Debt - Take Back Control

2009-09-23T20:35:00.002-04:00

Get Out of Debt - Start with your spending.
How to Tell If You Are Living Beyond Your Means

Despite several warnings, many people find themselves falling into the trap of living beyond their means. It may start out gradually, but left unchecked you can find yourself swimming in a quagmire of debt.

The following are some warning signs that you are on the path to financial ruin

1. You are becoming more dependent on your credit card. This is a red flag that your spending is beginning to outstrip your available income. The availability of a credit card is seductive in the beginning and many people give in to the temptation to use credit to fund impulse purchases. If this behavior becomes the norm, it could spell disaster because soon enough you will be using all the credit available to you and paying punitive rates of interest on purchases that could have been either deferred or avoided entirely.

2. You are behind on your bills. When your bills roll over from month to month this is a definite sign that you need to take a close look at your finances. It is best to get this in check as soon as possible before the amounts outstanding become completely unmanageable. Try to reallocate funds from certain areas or cut down on non-essentials like cable television until the situation gets under control.

3. Housing amounts to more than 28% of your gross income. This percentage is used by conservative banks as a benchmark to determine the size of loan you qualify for. Typically they estimate that housing should not use up more than 28% to allow for other expenses and to put aside some money for savings. If your mortgage, property taxes and insurance bill amounts to more than 28% of your salary you just may be in over your head, but this is nothing to be overly alarmed about if you have the discipline to control it.

4. If your credit score is below 600. Your credit score is a very tangible summary of your financial situation. Even if you are not sure that you are living beyond your means a look at your credit score can clear things up a bit. Your credit score takes into consideration the amount of debt that you have as well as how often you pay your bills on time, and the presence of any legal judgments against your name. If your score is below 600 you should take a closer look to determine how you can improve your situation.

5. You save less than 5% of your income. If you cannot afford to save more than 5% of the money you make, you are basically living from paycheck to paycheck. To increase the amount of money you can save, you should reassess your expenses and try to work towards getting rid of smaller debt obligations. This can free up cash that can be saved on a monthly basis. Of course, you must ensure that you actually save the liberated funds, otherwise your effort would have been in vain.

Some people love keeping up with the Joneses, others simply lack the discipline it takes to keep finances in the black. Either situation can be turned around with conscious effort.

For more personal finance advice check my profile at http://www.helium.com/users/499051 or visit my blog at http://financialfertilizer.blogspot.com/

Robert Allen made $94,000 in 24 hrs on the internet. Home business success strategies for developing multiple streams of income with your home business.

Eliminate Credit Card Debt - Settle the Debt Yourself

2009-08-24T16:27:00.002-04:00

How to Settle Credit Card Debt Yourself - Dan Morton
Is it possible to settle credit card debt yourself, without using a credit counselor or a debt consolidation company?

Actually, it's very possible to settle credit card debt yourself. You really don't need an expensive credit counselor, as they don't actually settle debt. And, regardless of what you think, they usually charge an arm and a leg for their services. Services that you can do for yourself, and do a much better job.

The "credit counselors" don't settle your debt - they sometimes can get your interest rates reduced (something you can do with one phone call). But, they can't usually get your balances reduced. The legitimate counselors have a debt management plan where you write one big check to the credit counseling company, then they pay your individual creditors. At least the reputable ones do.

There are many "credit counselors" who will take your money up front, with a promise to pay your creditors. They also take a hefty "commission" for themselves. But all too often, they don't follow through on your deal, and six months later you find out that NO bills have been paid, and you're a candidate for bankruptcy!

That's why I encourage people to settle their own debts and avoid being taken for a very dangerous ride by unscrupulous debt counselors, or consolidation companies.
Here are some easy tips to help you start settling your own credit card debt.

Skills You'll Need

Communicate. You need to have decent verbal skills to communicate with your creditors. This shouldn't be a problem for most folks - just be sure to express yourself clearly, without anger.

Negotiate. You'll need a clear goal in mind before you make that first call. Then. realize that true negotiating involves some give-and-take. You may not get what you want on the first call. Maybe not on the second, either. You will have to compromise - just be firm but pleasant.

Document. Write down everything - date, time, person(s) spoken to, subject and any deals made. Do this for each conversation. Keep all notes in a separate notebook, for organization.

Follow Up. Always follow up. Complete any phone calls, perform any tasks, and if an agreement is reached, do your part. That's follow up.

While most do-it-yourselfers settle their debt for an average of about 75%, those who have the skills listed above (and use them) can get their settlement for as low as 45% - 60%. Of course, it's possible to not get any reduction. That's how important using these skills really are. Some exceptional debt negotiators have gotten away with a settlement as low as 10% ! Industry professionals (attorneys and professional arbitrators), who bring millions of dollars to the table "only" get about 50%.

The fees these professionals charge is usually around 15% of your total unsecured debt - meaning that, on average, your debts are settled for a cost of about 65% (50% settlement + 15% fee).

If you're using the (4) skills shown above, it's possible for you to walk away from the negotiating table paying as little as 45% of your debt. And, that's a great deal for you!
Your Accounts Must Be Seriously Past Due

Unless your accounts are at least 180 days past due, chances are your creditors won't make any deals with you. If you're not that far past due now, do you just wait for the 180 day mark, then get serious about your debts? NO - before you are this far past due, it is your moral (and legal) obligation to try and pay your debts as best you can.

You can always ask your creditors for a lower rate before the 180 day mark - with the promise to make good on the debt. If it turns out to be totally impossible to pay the entire debt, then save the settlement option for last.

Always Use Certified Mail

When negotiating your debt, it is extremely important that you follow the agreement to a "T." That includes any lump sum payments sent should be sent by certified mail, with a return receipt. This will only cost you a couple of dollars, but the peace of mind you get when you know for sure that your payment has been received is huge.

If your creditors "misplace" or "lose" your check or other paperwork, then the burden of proof falls entirely on you - if you can't prove that you followed through on your deal, then you may be deemed in fault and all deals canceled. You know how difficult it is when working with a large company - that's why it's so important to be sure you have all of your bases covered.

When sending in a check, be sure to include a copy of the agreement in your certified mail.

Can you really settle your own debt?

Definitely, you can. You will have to learn some new skills, and be prepared for lots of ups and downs along the way. The path may not be smooth, but you've got lots of access to help - your local library, for instance.

The key to settle credit card debt yourself is to take action - now. Your debt will not go away by itself. In fact, no matter how dire things seem now, they will get much worse if you procrastinate. So, don't put this off - get organized and take action to help yourself, today. When it's all said and done, you'll look back and have few regrets. The only real regret you'll have is if you do nothing!

Are you trying - without much success - to become debt free? Why does it always feel like you're just treading water in a pool of debt? Feel helpless no more! Drop by DebtReliefDr.com to get help with your debt. I've also got a free mini-book waiting for you that can help you get started on your own path to a debt-free life.

Debt Myths That Stop You From Getting Out of Debt

2009-07-27T18:09:00.002-04:00

5 Myths - You Won't Get Out of Debt If You Believe These
By Raymond Aaron
America's effort to get out of debt is crushing the economy. The recent collapses in financial institutions are a primary example of the American attitude towards debt that has America bailing out mega corporations left and right. The chances are that these myths seem obviously false to you, but you have some of these mythical behaviors ingrained in your subconscious.

Many things will help put a band-aid on your debt situation. However, you will never recover from the endless debt syndrome if you don't increase you level of awareness about the behavior that got you in debt in the first place.

Myth #1- Higher income will get you out of debt.
Nothing could be further from the truth. In fact, statistics say that the more money people make, the higher the amount of debt.

Myth #2 - Small debt is no biggie.
People who think that small debts don't make a difference usually have large debts. The secret to doubling your income is to stay out of debt.

Myth #3 - If the interest rate is low, then it's worth it.
Even if the loan has 0% interest, you're still increasing your debt. This sales gimmick often fools people. They don't look at the debt; they look at the interest rate. If you can't afford it, you still can't afford it with the interest rate lowered.

Myth #4 - The debt doesn't matter because inflation will bail me out.
Let's say you buy a house that's much bigger than you need. You know that in a few years, you'll make all the money back because the bigger house will be worth more. In the meantime, you struggle just to make payment. Remember these four words: First survive, second thrive.

Myth #5 - You are entitled to this.
Many people will totally disregard the debt or expense because they feel a sense of entitlement. It's okay to get in debt because you deserve it, right?

Now, which one of these myths do you believe? Chances are that you'll say none in self-defense. Nevertheless, your behavior might indicate that you act as if you believe some of these myths.

You can try a variety of methods to get out of debt, but first you need to change your attitude and realize that no debt is the only way to go. If you are in debt, you can try a few things to get out of debt.

If you decide to go with a credit repair company, check to see if they're listed with the NFCC (National Federation of Credit Counselors). Never go with a credit repair company that charges hundreds of dollars upfront. It should only cost about $50 to get a consultation.

You can get out of debt on your own. Call your creditors and tell them the situation as shortly as possible because they've already heard everything. Tell them you can no longer afford to pay and would like it modified. You may get your rate lowered.

If they aren't meeting your expectations, calmly thank them by name and ask for the supervisor.

Get on the right track to get out of debt and never go back in debt again.
Raymond Aaron,

New York Times Top Ten Bestselling Author, "Double Your Income Doing What You Love"
Claim your Gift From Raymond to double your income. It's free.

Investing Tips - What You Need to Know Before You Invest

2008-08-28T20:41:00.001-04:00

7 Keys That You Need to Know About Stocks Before You Invest
By Easwar Koovappadi

Understand these 7 keys about stocks before you invest.

1. The market is now divided into two camps - big losers ( Banks etc, due to the housing and subprime crisis) and the big winners (resources specifically petroleum due to supplies being anticipated to be lower than demand in the medium term

2. Identify the industry that is a loser today but will provide handsome returns over the long run. The winners of today may not continue at the same rate. The big losers of today such as the banks have a low P/E and when the economy turns around , will provide handsome returns

3. The key to success in building a long term successful portfolio is find a combination of investments that over time will help you reach your financial goals and not an arbitrary collection of stocks that you bought because your office colleague bought it.

4. Learn what numbers mean to increase your investing success. Financial statements by itself may not be an indicator of how profitable a business would be in the long term

5. Diversify amount broad categories to build an unsinkable portfolio, in sectors such as Oil and Gas, Manufacturing, Consumer products. Resources, Finance, Utilities and Telecommunications.

6. Never buy stocks with a low P/E without research on why it could be a bargain?

7. Never give in to the temptation of forgoing research and depend on heresy, coffee machine chat.. Always look for companies that pay dividends. Time and again research has proved that dividend paying companies weather the business cycle storms more effectively. Always research before you put in your hard-earned money in an investment. There are several resources that offer knowledge that can help you get the skill set to become a successful investor. Look for companies that are significant in its industry and that has demonstrated year over year growth in sales and profit.

Easwar has an extensive knowledge of issues related to stocks, currency,exchange,taxes,cost savings ideas and loves to write about it. For additional resources please visit his blog

Forex Trading Made Easy - FREE Trial

Tax Preparation - Costly Money Mistakes

2007-03-31T11:25:00.001-04:00

Costly Tax Preparation Mistakes - By Phillip Jr Kimpo

April is a dreaded month for many people, all because it's tax month. Many people cram their tax return preparation, and this can result in many costly errors. In this article we take a look at some of the tax mistakes that millions of people commit. Avoid them, and you ensure yourself of a more peaceful tax month. You also get to save cash!

Typographical errors -- Misspellings (such as in social security numbers) will cause delays in processing your tax return. It's more deadly when you transpose digits when writing cash amounts (e.g. writing $42,903 instead of $42,093). You can lose cash or earn the ire of the IRS with this kind of mistake.

Taking the standard deduction -- It's almost always better to itemize your deductions, as you're going to save more money this way. According to the Government Accountability Office, there are more than two million taxpayers who overpay their taxes by not itemizing.

Overlooking deductions -- When you itemize your deductions, make sure you exhaust all possible deductions. The extra effort will be worth it. Important deductions sometimes overlooked by taxpayers include charitable contributions, medical expenses, traveling expenses, gambling losses, clean-fuel deduction, education expenses, and job expenses not reimbursed by the employer. You can even deduct your tax preparation expenses!

Math errors -- According to the IRS, basic arithmetic errors rank as the number one mistake of taxpayers. Sometimes, these errors just involve simple addition and subtraction! A great way to avoid math errors is by using tax preparation software.

Forgetting to attach documents -- Many people forget to attach essential wage statements to their tax returns. Don't forget the W-2 and 1099 forms from all employers.

Missing the deadline -- Very easy to avoid, right? But many taxpayers still miss the deadline, sometimes because they don't have the money to pay for the taxes. If you can't make the deadline, file an extension instead. Don't get charged a late penalty!

Forgetting about taxes when it's not April -- You should keep your taxes in mind every day of the year. Sure, it's a hassle, but dutifully recording those little tax-deductible things that happen day in and day out will save you a lot of cash in the long run. You'll need to keep documents, receipts, and bills from the entire year if you want to get a lot out of your itemized deductions.

A word of caution: Once you've taken care to avoid these mistakes, don't ruin an otherwise perfect tax month by falling for the multitudes of tax scams out there, such as those which arrive in fraudulent emails.

Also, if you've committed mistakes on your tax return (e.g. wrong filing status, typo error, wrong number of dependents), always remember that you can correct them even after you've filed the return. Just file the Form 1040X, which allows you to revise your tax return.

Last but not the least, you can minimize tax mistakes by hiring a tax professional to prepare your tax returns. You might also want to consult a tax advisor before tax month.

The author recommends an article on Costly Tax Mistakes for a more in-depth discussion and the best practices after tax season. He also recommends Tax Information for general info about taxes.

Debt Crunch

Debt Free Living - Eight Ways to Consolidate Debt

2007-03-17T12:32:00.000-04:00

Eight Ways to Consolidate Debt - By Annette Leahy Next to winning the lottery, a debt consolidation loan is a debtor’s dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.

In reality, consolidating bills isn’t always easy. If you have a lot of debt, it can be hard to find a consolidation loan at a lower interest rate. And if you’re not careful, you can end up deeper in debt than when you started.

Your goal in consolidating your debt should be to lower your overall costs. To accomplish this there are two things to keep in mind:

1. Get the lowest interest rate possible

2. Have a plan to pay off your debts in 3 – 5 years.

Here are some of the best ways to consolidate:

Using Credit Cards

The good news about this method is that with a good credit rating, you may get a much lower rate than other forms of consolidation loans. And since credit card issuers don’t require collateral, you aren’t “risking the farm.”

Call your current issuer to ask what interest rates they will offer you if you transfer balances from other cards over to theirs. Go for a fixed rate if you can get it, and ask them to waive any transfer fees. If you can’t negotiate a low rate with your current issuer, try shopping for a new card at a site such as CardRatings.com. But be careful! Too many applications for credit in a short period of time can hurt your credit rating.

Once you do consolidate this way, be sure to set up an optimal payment plan so you can be debt-free in 3 – 5 years.

Home Equity Loans

With a home equity loan, you borrow against the value of you home, minus any other mortgages. The two major kinds are:

1. A Home Equity Loan – a fixed amount of money for a fixed period of time (sometimes at a fixed rate) and

2. A “Home Equity Line of Credit” where you borrow up to a pre-approved credit limit (interest rates usually variable) and can borrow again if you still have money available.

These loans can offer attractive rates, low payments, and the interest is usually tax-deductible if you itemize.

Many issuers offer no or low closing costs for these loans. Interest rates are often variable, however, and there’s always the risk that you can lose your home if you can’t pay.

Cash Out Refinance

Refinancing your home and taking out money to pay off bills (called “cash-out refinance”) is yet another way to tap the equity in your home. If you can refinance at a substantially lower interest rate, you’ll eliminate the high interest costs of the debts you pay off, and you could even come out with a lower payment than you have right now since rates are so low.

One option to consider: an interest-only loan. By lowering your monthly payment, you can free up money to use toward paying down other high-rate debt or building a retirement fund.

Make sure you understand the total cost of refinancing. Take any money you’ve freed up by paying off other bills and use that to create an emergency savings fund.

Traditional Debt Consolidation Loans

A debt consolidation loan is an unsecured personal loan, and the only collateral you are offering for the lender’s security is you. Because lenders consider them risky loans, they’re usually more expensive and not always easy to get if you have a lot of debt.

If the interest rate is too high to make it worth it and the repayment term is ten or fifteen years, you should probably consider another method of consolidation. However, if the term and interest rate are right, this can be a great way to actually save money in the end. (Check Bankrate.com for current averages). Remember, to calculate the total cost of the loan from start to pay-off.

Credit Counseling

Credit counseling agencies may help you get out of debt, though they don’t actually consolidate your debt.

Instead, payment plans (usually with lower interest and fees) will be worked out for all of your eligible debts. You’ll make one monthly payment to the counseling agency, which will pay all your creditors.

Participating in a credit counseling program generally won’t hurt your credit rating, and if you stick to the plan you can be out of debt in three to six years. But be careful which agency you work with. If the counseling agency pays your bills late, you’ll pay the price since you’re still responsible to the lender. It happens.

Debt Settlement

Debt settlement is another option that’s become increasingly popular with consumers who have a lot of debt and can’t, or won’t, file bankruptcy. You stop paying your bills and instead make a regular monthly payment to the settlement company. Your creditors contact them, and not you, about your overdue bills. As your accounts fall further behind, the negotiation company will settle your balances – usually for 50% of the balance or less (including fees) depending on the debt. Most people can be out of debt in less than two years or less using these programs.

It’s not perfect. Your credit rating will be hurt in the short run and you must be certain you’re dealing with a reputable company or the money you pay each month could disappear. Still, for consumers who can’t shoulder the burden of debt they have now, it can be a very good option.

Retirement Loans

If you have a 401(k), 403(b) plan or certain types of pension plans, you can borrow against your nest egg. (You can’t borrow against your IRA.) It’s easy, with no income qualifications or credit check.

The key here is to borrow against your retirement account, rather than withdraw from it early so that you don’t end up paying taxes and a 10% penalty. Also, if you leave or lose your job, you may have to pay your loan back immediately or pay taxes and penalties for an early withdrawal.

These loans typically offer low interest rates, and interest is paid to you, since you are the lender. While tapping your next egg like this can short-change your retirement, so can costly debt payments. If you are in your 20’s and 30’s,you obviously have more time to rebuild a retirement nest egg, but even if you’re in your 40’s or 50’s, you will want to weigh the cost of paying the high interest of the debts over time, versus borrowing from your retirement account. The return you get from paying off high-rate debts is guaranteed – while the stock market isn’t.

Rapid Repayment

There is a mathematically optimal way to pay your debts. Choose a fixed level monthly payment, and commit to it each month. Pay as much as you can on the highest rate debt first, while payment the minimums on the rest.

I almost always suggest consumers with debt start by creating one of these plans. Many people who do so find they don’t even need to consolidate to get out of debt in the next few years. They just need a plan and they can do it on their own.

Overview

The biggest mistakes people make when it comes to consolidation are:

A. Not having a plan for paying the debt off after they’ve consolidated, and

B. Procrastination. Waiting for the “perfect” solution to come along almost always means you’ll end up deeper in debt. Choose your approach, and start getting out of debt today!

For more information on dealing with debt, visit www.stopdebtcollectorscold.com.

Gerri Detweiler is considered one of the country’s top credit experts. She has been interviewed in thousands of radio, television and print news stories including USA Today, The Wall Street Journal, The New York Times, Dateline NBC and many others. She has testified before Congress several times and worked on reform of the national credit reporting laws.

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Note from Tammy - I have posted Eight Ways to Consolidate Debt because there are a few right on ideas to help you pool together your debts into one payment which can help you initial start clearing out your debt BUT...

... there is a big BUT here - before you start any kind of budget or consolidation plan you must (I repeat - Must) commit to stop using credit cards, loans and finance companies to get yourself out of money trouble. Stop using credit cards. No more loans or new debt. Think of revolving debt like a revolving door - it doesn't stop until you get off! To learn more effective ways to get out of debt and manage your money better with a financially healty mindset - visit Debt Crunch!

Invest 50 cents to Find Out Where Your Money Goes

2007-03-08T09:15:00.000-05:00

How to Save Money - A GREAT Technique to See Where Your Wasted Money Goes - All For Just 50 Cents! By Gary Simpson

I don't think that I have ever met ANYBODY who does not want to know how to save money. Knowing how to save money will improve your cash position without having to earn even one cent more than what you earn now.

I will bet that virtually 99% of all people completely waste money EVERY DAY without even thinking about it.

Wasting money is like a constantly dripping tap. It's just a little drip every few moments. But... if you place an empty bucket underneath that drip it soon begins to fill up. So, what are we doing? We are measuring the wasted water.

It is the same with the drips that fall out of your financial tap.

Here is what to do:

* Go and purchase a 50 cent notebook - something small that you can carry everywhere for a week,
* EVERY time you spend ANY money - make a note of it in your notebook,
* At the end of the week tally up ALL the entries
* Separate EVERY expense into two categories - ESSENTIAL (examples - mortgage, rent, electricity, core food requirements) and NON-ESSENTIAL (examples - newspapers, magazines, chocolates, alcohol, cigarettes, chewing gum)
* Determine how much NON-ESSENTIAL expenditure is just blatant waste.

You will probably be absolutely amazed at how much money is just wasted on completely useless items.

So, if you want to know how to save money then this 50 cent investment and the time that it takes to record where your money goes to will probably be one of the greatest revelations that you will ever make.

Learning how to save money will empower you to do something positive for your financial future. Do it. Do it NOW!

Gary Simpson operates the Turn Debt Into Wealth website. To learn more tips on how to save money go here: "How to Save $1000's and Increase Your Net Wealth."

Debt Crunch

Debt Free Living - How to Make 100% or More on Your Money

2007-02-06T18:52:00.000-05:00

How to Make 100% or More on Your Money - Dave Berky No, this is not some futures or commodities trading strategy. You don't have to join a cult or an MLM. And you can do this for years.

The only qualification is that you have a mortgage or home equity loan.

You can achieve more than 100% returns on your money simply by paying extra money on your mortgage each month or as often as you like.

Here's how it works: If you have a 30 year mortgage at 7%, for each $100 of your loan amount you will end up paying as much as $209 in interest. So within the 30 years of paying off your mortgage, you will repay that $100 that you borrowed PLUS you will pay up to an additional $209 in interest.

So if you "invest" an extra $100 along with your first mortgage payment, you will end up saving $209.42. That's a return on your "investment" of 109%! And it's guaranteed.

Plus you have just lowered the amount you are in debt and reduced the time it will take for you to pay off your mortgage. How many cold-calling investment brokers can offer you a deal like that?

So you could look at it as investing the $100 in your mortgage means that there is $309.42 you won't have to pay out in the future. You could even argue that this is a return of 209%.

But what if you are several years into your mortgage. Well, even if you are 10 years into your mortgage (and the average mortgage only lasts about 7 years these days), you can still save $139.42 in interest by paying an extra $100. Or if you are 20 years into your mortgage you will still save $69.42 by paying an extra $100.

So what have you got to lose but your mortgage debt?

So why don't more people do this?

Probably because the conventional "wisdom" says that if you can earn a better rate with an investment than what you are paying on your mortgage you should invest instead. If you are paying 7% on your mortgage and you can earn 11% in the stock market, it seems a no-brainer that you should invest in the stock market.

There are two problems with this philosophy: first, the 11% stock market figure that is widely quoted is an average over the past 30 years. Returns in the stock market have averaged on a yearly basis both higher and lower than the 11% rate. How do you know when you are investing in a year with negative returns? Unless you are in the financial industry you are probably taking as big a gamble as you would in Las Vegas playing the Roulette Wheel.

The other problem is that both inflation and taxes will eat away at your 11% return. Taxes can eat up to 2% of it and inflation can take another 3%, leaving you with only 6%, which is less than your mortgage. And that's assuming you actually get the 11% return that year. Also remember that years in which high returns in stocks are enjoyed are also often accompanied by higher than normal inflation rates.

But some people will not be persuaded and will insist on investing in the stock market before paying off their mortgage and that is understandable. We all want to build some sort of retirement nest egg or have an emergency fund that is growing by more than the dismal rates offered by bank savings accounts or money market accounts.

But if paying down your mortgage makes sense at 7%, how much more sense does paying down your higher interest rate debts. If you have a credit card charging you as much as 24%, it makes way more sense to pay this off before investing any money in the stock market.

Some people would argue that it is good to invest always even if you have debt. But that is contrary to the overall goal of increasing your assets and wealth. For example, let's say you owe $1058 on a 24% credit card and you have an extra $100 each month. You decide to make your minimum payments while investing the rest into the stock market.

If your stock market investment gives you a 12% rate of return you will have about $996 at the end of the year ($100 - min pmt x 12 months + "interest"). But you will still owe $1079 (more than you started with) on your credit card.

Viewed another way; you paid a total of $1200. Adding together the negative credit card balance and the positive investment value gives you have a net value of $-83.

Instead, if you use the full $100 to pay off your debt, you will be debt free at the end of the year. You won't have an investment but overall you will not still be negative. The next year, you could invest the full $100 into the stock market. But if you still had your debt, you could only invest $78.50 while still making your minimum credit card payment ($100 - min pmt: $21.50 = $78.50).

Now if you take this scenario and play it out over 5, 10, 15 even 20 years you can see how paying your debts off now can save you $1000s in interest and help you pay off your debts sooner. Once your debts are paid off you can use ALL of the extra money to invest.

Numerically it is much better to pay off your debts first. But since your stockbroker makes his money off your investing what do you think his advice will be?

David Berky is president of Simple Joe, Inc. makers of the popular Debt Eraser PC software which helps to create a rapid debt reduction plan to get out of debt much sooner and save $1000s in interest. Visit http://www.simplejoe.com to learn more.

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Visit Debt Crunch for more debt free living tips

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Personal Debt Relief - Jumpstarting Debt Reduction

2007-01-14T12:35:00.000-05:00

Jumpstarting Debt Reduction by Adam Heist If your financial debts have been getting you down in recent times there are a variety of tips that I am about to share with you that you can use.

1. Lock your credit cards in a safe deposit box or cut up the cards completely. You can keep one low interest rate card for real emergencies but don’t keep the store cards. Store cards charge high rates of interest and prompt you to buy things you don’t need.

2. Ask for a promotion! Sounds weird but in reality half the people who ask for one in the right way, actually get it. There is no better way of reducing your debt than by increasing your income (and keeping you expenses low too!).

3. If you have a reasonable portion of a loan, consider paying it off in one go at a major discount. Go approach your lender and suggest to repay anything between 25%-75% of the original loan amount. Many times they actually accept!

4. If you are facing troubles with any of your lenders the best thing to do is to go and approach them personally, as soon as possible. Ducking and diving exacerbates the situation and is not looked upon favorably by your creditors. If you approach them, in the future during difficult times, they will reciprocate the respect.

5. Get a home energy audit done to help you save costs. Get your supplier to advise you who can do this for free or at a nominal charge. Make sure new appliances are energy efficient and be smart in your usage. This alone will save you a bunch of money annually.

6. Have any spare resources to rent or sell? Do it and use the money to pay off your debt faster.

7. Look for smarter insurance and investment products. Get a financial advisor and follow their suggestions. Make sure you save some money every month for your savings & investments.

8. Buy more online whenever you can. The cost of products is usually lower since the vendor does not have to maintain the same high overheads as a retail outlet.

9. Get direct debit setup so that you will not miss your crucial payments. This way you will be left over with funds that you can actually use without avoiding paying the credit or other bills.

Adam Heist has been writing on the internet for many years now. Adam currently works day and night on his website igroup building society loan. For more information on this topic please visit his website today.

For MORE Debt Help and Money Resources - Debt Free Living at DEBT CRUNCH!

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Eliminate Debt - Wealth Tips - Fight Your Fear!

2006-12-31T20:10:00.000-05:00

Wealth-e-Tips: Fight Your Fear c) 2006 Stuart Goldsmith

So much of your life-energy is wasted in endless
debate, procrastination, agonizing and worry about the
effects of your decisions. If you would only take bold,
decisive action, then something almost magical happens.
The way opens up for you and the problems and
obstructions melt away. I'm not claiming that the
transition will be silk-smooth, but I can promise you
that half of your fears will be unfounded, and many of
your anticipated problems simply will not happen.

What's really going on is subconscious resistance to
change. We really do fear change, for good survival
reasons. But in order for you to have a joyous,
sparkling life, you need to embrace change and welcome
it into your life.

Consider the 'you' of today. Forgive me, but I bet it's
a pretty dull routine without much excitement, right?
Also, do you have any real plans, or are you just
jogging along, letting life happen to you? I also bet
you're in a job which you tolerate, but certainly has
nothing whatsoever to do with that quirky, brilliant
'you' inside. Remember? The one which got suppressed
all those years ago?

Start trying to uncover that buried desire - and don't
let 'shoulds' and 'oughts' get in your way!

Try, just for once, to listen to yourself without
immediately leaping in with habitual negative thoughts
about the impossibility or impracticability of your
dreams. Even if your dream seems crazy, at the very
least it will point you in the right direction and
perhaps trigger a more realistic dream.

Remember, the purpose of a dream is to get a deep need
filled in you - the dream is just a vehicle or method
for getting your needs met. So when I ask the question
"what are your dreams?" I am really asking you "What
are your needs?" It is your needs which have been
suppressed all these years, mainly by thoughts of
sacrificing your needs to the needs of others.

So what better time than right now to examine what it
is you really need, what it is you are really on the
planet for? Out of countless thousands of generations
of humans, you have the sheer luxury of being born into
a time and place where you can decide how to live and
what to do. That's scary, but also amazingly exciting,
don't you think?

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Debt - Who Is Really to Blame for Our Problems?

2006-12-28T20:30:00.000-05:00

Debt - Sometimes we blame the bill collectors, the creditors that extended us the credit cards in the first place but when we find ourselves in a major Debt Crunch - it is our own decisions and impulses that landed us there to begin with. Remember...

Control Your Impulses - Sometimes it can be hard to walk away from a really good deal. Many impulse shoppers just can't stop shopping. Like any addiction, it has to be faced before it can be conquered.

How do you know if you have a shopping problem? Ask yourself the following questions:

* Are you surprised when you credit card bill arrives?
* Do you have no idea how much money you owe or have?
* Do you hide purchases from your spouse?
* Do you have more items than you can fit in your closets?
* Do you have things that you have never used?
* Do you come home from the store with things you never intended to purchase?
* Do you justify your purchases by saying that they were on sale or a great deal?

If you answered yes to the above questions, you probably are an impulse shopper.

Impulse shopping is a serious issue. When people are unable to save for the things that are important to them -- a house, retirement, a new car -- impulse shopping is often the root of the problem. It causes serious debt and can even lead to bankruptcy.

One of the best ways to counter the urge to splurge is to set specific financial goals that you can work towards. By working to create a budget and saving for your future you can gain control of more than just your finances. You gain control of your life.

But you don't have to totally deprive yourself. Once you have developed a working budget and are taking the steps to realize your goals, you can set aside money for occasional spending. This is your splurging fund and is just for you. Consider it a reward for taking back the control of your money.

Impuse spending can affect more than just your finances. It can take over your entire life. When you are looking to overcome the spending urge, you have to learn to differentiate your needs from your wants. This is a hard thing to do. We are so bombarded with messages that appeal to our psychological needs that we are often unable to realize that we don't "need" something.

One way to control your spending is to carry a small notepad in your wallet or purse. When you see an item you really want, write it on the card. Wait a week. If you still want the item and can find money in your budget for it, you can go back and purchase it.

Never keep more than three items at a time on your list. If you want to add another item, you must remove one first.

You can avoid temptation by simply not going into the store. If you are not going in with a list for specific items that you need, you shouldn't even go in at all. A lot of impulse spending is simply recreational spending -- something to do. You can avoid this spending by never putting yourself in the situation to begin with.

Use cash whenever possible. For example, when you go grocery shopping, leave your credit cards at home. Don't take in your wallet or checkbook. Carry only the cash you have allotted for groceries. This will prevent you from spending more than you have.

Controlling your impulses to spend simply takes practice. Your goals are essential. Every time you make a purchase decision, ask yourself how the purchase affects your goals. If you take the time, you can change your spending habits and afford the things you really want in life.

Martin Lukac http://www.MartinLukac.com , represents http://www.RateEmpire.com , an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at http://www.1AmericanFinancial.com

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Learn About Stock Options - Market Psychology

2006-12-10T14:47:00.000-05:00

Stock Options - Market Psychology by Al Thomas - Today we are inundated with tons of information about the economy, stocks, government agencies and foreign governments. They show us charts and graphs of the increase/decrease in oil production over the last 5 years, the amount of maple syrup produced in Vermont for the past century, the time it takes to bounce a signal off the moon and all kinds of other nonsense that we can live without. The talking heads on the investment programs, both radio and TV, tell us how this is going to affect the price of certain stocks and the market in general. Well, maybe.

When you step back to get a better view of the market because the trees are in the way you really get a different view. No matter what stock or mutual fund you own there is one important factor that is causing all of them to change. It is the mass thinking of all the people who own equities of any type. The stock market is a reflection of this mass thinking and causes changes in human behavior. This mass thinking does not necessarily reflect what the economy is doing at any specific moment.

Take the euphoria of stock buyers at the end of 1999 and the beginning of 2000. All the mass psychology was bullish and everyone knew the market was going to go higher. The economy knew better and stocks headed down. The market was a reflection of what we could not see.

Currently many people are becoming bearish and think the market is headed lower, but no one really knows until after the fact. It is dangerous to be either bullish or bearish at this moment. So what is the best course of action when you are not sure of what to do with your money? Keep in mind that protection of your capital, especially your retirement money, is a prime consideration. If you own a stock now that has been going up you don’t want to sell it, but you can protect yourself against loss and lock in profit by placing an Open Stop-Loss Order with your broker. Keep moving the stop up as the stock goes higher.

If you have a stock or fund that is going down you must either sell out or place an order to get out if it goes down further. Usually 10% is about right. If your stock is $40 place your stop at $36.

If the mass psychology becomes too negative it can cause massive selling and even the best equities get flushed. All boats go down when the tides goes out. If you do not have a loss limit in place at all times you will lose your investment capital. The example of this was what happened when the World Trade Center was destroyed. Selling was caused by mass psychology and had little to do with valuation.

It is a herd instinct and you don’t want to be led to slaughter will all the other dumb animals. Protect your money. Put in a stop today.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005 al@mutualfundstrategy.com; 1-888-345-7870

Debt Crunch!

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Bad Debt Management – Take Control Of Your Debts Now

2006-12-10T14:23:00.000-05:00

Bad Debt - You have debts that you think are now beyond your capacity to repay them. Such bad debt situation is common thanks to modern day consumerism that has led to uncontrolled spending. But along with the problem comes the solution also. And the remedy is bad debt management. Bad debt management involves various techniques to manage debt in such a way that the debt burden is reduced considerably.

You can manage bad debt by controlling your spending habits. you know that it was because of excessive use of credit cards that you came under debts as you could not cope up with ever increasing interest rate and penalties on late payments or payment defaults. One way to manage debt is to chop down the number of credit cards. Preferably use debit cards instead as this card does not allow you to spend more than the amount you have in your account. Make a budget and stick to it for controlling spending habits. This means you would not be incurring debts anymore.

Another way to bad debt management is that you may hire debt Management Company and ask the company to negotiate with your credit for reducing interest rate. These expert companies can negotiate a lower rate easily as lenders prefer the return of the loans. Lower interest rate means you can pay debts with affordable lowered monetary outgo per month. You can locate debt management companies or agencies on internet and their services are available at a fee. These debt management companies offer host of other solutions and advices as well. If you think your debt is still unmanageable because they are too large to handle, then you can opt for a sure shot solution of the problem.

You can take a debt consolidation loan. Through a debt consolidation loan you can pay off all debts in one go and you get rid of old debts. The debts however are still there in the form of the debt consolidation loan under which you borrower an amount almost equal to the debts. the advantage of debt consolidation is that you are no longer paying higher interest rate on debts and instead paying lower interest on the debt consolidation loan. larger repayment duration is another advantage as the loan amount can be spread in as many installments as suits you so that monthly payments towards the installments gets reduced.

Make sure you apply the techniques of bad debt management with all efforts put into it. Surely this way you can gradually get rid of your debt problem and lead a relaxed debt free life.

Amanda Thompson holds a Bachelor’s degree in Commerce from CPIT and has completed her master’s in Business Administration from IGNOU. She is working as financial consultant for chance for loans. To find bad debt management, Debtconsolidation loan, Cheap rates, Personal loans, Secured loans, Unsecured loan at cheap rates that best suits your needs visit http://www.chanceforloans.co.uk

Get Out From Under The Debt Crunch - Start Over

Debt Cruncher Software - Own Your Paycheck Again

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Eliminate Personal Debt - Alternatives for Filing Bankruptcy

2006-12-06T20:29:00.000-05:00

Alternatives for Filing Bankruptcy - The term bankruptcy conjures up an image of someone publicly disgraced and broke. When in deep debts, one might feel that bankruptcy is their only hope. But bankruptcy alternative can help you eliminate debt without encountering any negative publicity.

Why should you consider bankruptcy alternative?

Bankruptcy has many undesirable consequences that will trail your life for long. It will remain on your credit report for nearly 10 years due to which no reputed lender will consider you as a borrower. There is a lot of negative publicity involved with a bankruptcy as well. The advent of technology has made available information and help for a debtor who is considering bankruptcy alternative with a simple click. The debtors must research before they choose a bankruptcy alternative to ensure that it does not have much worse consequences.

Bankruptcy Alternatives:

• Consolidation loans: You can consolidate all your debts into one affordable and easy to manage monthly payment with consolidation loans. These loans speed up paying time and reduce your monthly bills to a great extent. Consolidation loans will also help get harassing creditors off your back and help you avoid bankruptcy.

• Out-of-Court Settlement: The debtor can also opt to settle his/her unsecured debt at a reduced amount through an out-of-court settlement. Independent advisors who work with various companies will help negotiate an out-of-court settlement with your creditor.

• Individual Voluntary Agreement (IVA): IVA stands for Individual Voluntary Agreement. It was introduced as a part of the Insolvency Act of 1986 and is a legally approved debt solution. When you opt for an IVA as a debt solution, you enter in to an agreement with your creditors. An Insolvency Practitioner helps to formulate your IVA. It will help freeze your high interest debts and ensure that you are debt free in five years or less without any negative publicity.

• Credit Counseling: Credit counseling agencies will deal with your creditors. They will negotiate lower interest rates and comfortable repayment options to suit your pocket. Credit counseling will offer all the information and help you need to deal with your debts. Whatever you choose as an alternative to bankruptcy, act fast! There are a number of online services which can help you with your queries. They will be able to achieve the results that you were unable to achieve on your own. Apart from avoiding bankruptcy right now, it is important to understand how you can avoid the pitfalls of debt in the future.

Log on to Bankruptcy Alternative for information and support on bankruptcy alternatives.

For a low cost yet effective home budget software program and fantastic ebook "Take Back Your Paycheck Again" learn how Leo Quinn can help you get back on track to eliminating your own personal debt.

Money Mindset - What is Holding Back Your Success with Money?

2006-12-06T20:12:00.000-05:00

Money Mindset - Money or financial wealth appears in your life based, not on coincidence, effort or accident, but by your “mindset”. Mindset, in this context is a combination of thoughts, beliefs, values, and emotions. All are things that you can change and influence. No money? No problem! Start here.

Everyone has a money setpoint. This is the amount of money you have that you feel totally comfortable with. If you have "limiting" beliefs about money, they will hold you back from wealth. If you have clear, true beliefs about money, you will be rolling in it. You formed your beliefs about money from your parents, culture and media and continued to form them through your own experiences. You picked up beliefs such as "I'm no good with money" or "Money is not important to me" or "Money doesn't grow on trees (meaning it's hard to get)" or "Work hard and the money will come", etc.

Each of these and many more will serve to limit the amount of wealth you can sustain. When you hear about lottery winners who lost it all within a few short years, this is the principle that makes that happen. You simply can't have more money than your beliefs will support. At least not for very long! So we want to raise that setpoint by clearing out limiting beliefs to more closely match our own desires for wealth. To begin working with your beliefs about money, make a list of as many as you can think of. Think about each and look at how they could be affecting your prosperity.

Stretch and you will receive. Often, even with healthy beliefs about money, we don't allow money to flow in because we are living small lives. We have restricted our self-expression to relatively small, safe areas. It is when we stretch out of that box, move into new arenas, try something new, even bold, that we open up our lives to the abundance that has always been there. Truly this can affect your money flow significantly. So stretch out a bit, see what this opens up for you. What dreams are you “sitting” on? What small steps could you take today to widen your horizons or to start to live one of your dreams?

Money is a flow. Money is not static, not meant to be hoarded and not meant to stagnate. It is a flow, a flow just like an energy flow. It comes in and it goes out. You can probably see that in your own life. Some of us have more in than out, some more out than in (probably most people) and some just enough flows in and just enough flows out. Each of these flows represents where we are consciously or subconsciously with money. If money is held tightly, one hoards, is stingy, and the flow in and out is blocked. The feeling generated (or causing this) is one of lack or not enough money. If money flows out so that it exceeds that which comes in, it starts the debt/fear cycle which further restricts or blocks the incoming flow.

I like to think of this like a river. The river is flowing with money instead of water. You may have a tank that draws and stores money from the river of money, but it doesn't impede the flow or lessen the output in any significant way. So the money coming in is more than ample for your needs and desires. The tank is your working money (investing, charitables, etc.) or savings for large desireables. The river below this tank (outgoing) is the money you spend or donate. No matter how little your income, it is important to the flow to be giving. It is useful to look clearly at your money flow. Look at your income in and expenses out. Which is greater? What is your debt? What are your assets? What percentage do you save? What percentage do you give to others (charities, etc.)? What does this picture tell you about your money flow?

Money is what you think it is. If you think of a typical large river with water, the volume in gallons of water is huge! Because of the way the natural world works, there is always more water coming in and flowing out (if left alone!). All of this is available to you. A river of money has more money than you could possibly spend and is available to you for the taking.

But often we perceive that there is a very limited supply of money for which we must compete. We feel there is not enough to go around. Some of us think (guiltily) that if we get a lot, someone else will have to do with only a little. So in our river example, you'd be looking at a small creek instead of a large river. But if you perceive that there truly are oceans and oceans of money available, essentially an unlimited supply, then it frees you to receive in the most miraculous way. Practice thinking of money as a huge river flowing your way. When reading this paragraph, what did your river look like? What thoughts did you have about the pictures you see in your mind? What feelings did it invoke? What can you learn from this about your mindset about money?

Mary Anne Fields is an expert in helping you create the life of your dreams, to have more wealth and to thrive through life's transitions. Sign up to receive her free ezine and get two free gifts, her juicy report "85 Ways to be Happier Now!" and "5 Minute Meditation" MP3 download. Sign up at http://www.lifeunfolds.com/lifeunfoldsezine.htm.

Take Back Your Paycheck Again - Leo Quinn

Women - Money - Estate Planning - Stock Options ... Do These Mix Well??

2006-12-03T18:17:00.000-05:00

Why Estate Planning Is a Woman's Issue - William K. Hayes

In a nation consumed with wealth-building, it’s easy to forget that earning money is only half the financial security battle. Equally important is protecting our hard-won financial security with a well-designed estate plan. For women, the importance of planning is paramount, because most often women must cope when loved ones become disabled or die.

A recent study by Penn State University found that wives were three times more likely to have to cope with a mate’s illness or injury. The study also revealed that few husbands had prepared the kind of estate planning documents that would have eased their wives’ burdens. For example, a Living Will and a Health Care Power of Attorney give wives the legal clout to act on their husbands’ behalf in the event of an emergency.

Without these tools, wives must endure the process of living probate, also known as a guardianship proceeding, in which a husband may be declared incompetent, and a probate judge decides who should be responsible for his personal care and financial affairs. While the wife is often granted this role, there are no guarantees that she will prevail. Judges have wide discretion over whom they may appoint, and the judge may deem that an outsider or professional guardian may be better suited to the task.

According to the U.S. Census Bureau, widows over the age of 65 outnumber widowers by five to one. And when women lose their husbands, they are often thrust into poverty. But if you think impovershed widowhood is something only the elderly experience, think again. The average age at which a wife becomes a widow is just 56. Estate planning can’t do anything to mitigate the loss of a loved one. But it can help ensure that the surviving spouse is financially protected. When a husband dies without a plan, his estate is adminstered by a probate court. Death probate is a costly, time-consuming and public process that may add months, or even years, to a widow's emotional stress.

Ask most married individuals whom they want to inherit their worldly goods, and they will usually say their spouse should receive the lion’s share. Unfortunately, most states use a rigid formula for distributing the deceased’s assets. In many states, the surviving spouse receives half, with children receiving an equal share. The result could be that grown children who are financially independent could receive assets that their parent needs more.

When Americans fail to plan, the government rejoices. That’s because taxpayers are losing opportunities to reduce or completely avoid estate taxes. Today, each taxpayer is entitled to pass assets worth up to $625,000 estate tax-free. With proper planning, a married couple can protect from taxes assets worth $1.25 million. Assets over that amount, however, will be taxed from 37 to 55 percent. Say that a husband and wife have a $1.25 million estate. But as a result of poor estate planning, they shelter only $625,000. About $246,000 will be lost to estate taxes. Remember that for estate tax purposes, the government includes your home, retirement plan, and the death benefit of your life insurance policy. Together, these can reach the $625,000 exemption quickly.

The good news is that there are ways to not only reduce your estate tax liability in the future, but to minimize income and capital gains taxes now. Estate planning can help uncover opportunities to preserve your legacy for loved ones, not the government. But you must choose the proper plan.

For instance, if a will is the foundation of your estate plan, your estate will still go through probate. If you own property in more than one state, your heirs will endure a probate in each of those states. Also, a will can’t protect you from a guardianship proceeding. These are just some of the reasons why a growing number select a Living Trust as their estate plan of choice. A Living Trust avoids "death probate" after you’re gone or a "living probate" should you become disabled. Not only does a Living Trust offer greater options in deciding to whom, when and how your legacy passes, it can also help reduce or eliminate estate taxes. You won’t know which strategies are best suited to your needs until you consult with a knowledgeable estate planning attorney. For women, the need for effective estate planning takes on a special urgency. Considering the many advantages that a Living Trust - based estate plan provides, there’s no good reason not to have one.

William K. Hayes is a member of the prestigious American Academy of Estate Planning Attorneys and has been engaged in the practice of law for the last 31 years. The Hayes Law Firm specializes in Trusts, Probate and Asset Protection Planning for professionals and small business owners. For free information or to attend an upcoming seminar, you may contact attorney Hayes at 626-403-2292 or visit The Hayes Law Firm website at LosAngelesTrustLaw.com.

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I posted this estate planning - finance article because I believe that often women are left in the dark on such issues as finance and estate planning, life insurance and trust funds until after the fact. I am sure, it's not a global or generality that women are less involved in the decision making of a families finances unless she is a single daugther or parent that will in the end, handle the settling of an estate. It's time to be proactive on all counts. Tammy

Even when it comes to stock options - I read a summary about this software included a comment that this software is targeted toward men. Would you have an opinion on WHY it is geared toward men? Don't women want to know if the options they are looking at to buy or sell ARE priced right? How many women actually buy stock options on their own volition? Can we talk about this! Tammy

Options and Market Trends - Volitility Software for Stock Option Pricing

2006-12-03T18:11:00.000-05:00

Option and Trends - What are options? Specific securities or commodities at a stated price within a specified time that are bought and sold - healthy profits are the goal.

Following The Trend - Frank Kollar

Market timers following trends generate great returns over time because their buy and sell decisions are based on the one piece of information that counts the most. Price.

We are barraged with fundamental analysis, price earnings ratios, economic projections, news events, and a steady stream of TV and news analysts who tell us where they think the market is going.

But the simple truth is... no one knows where the market is going next.

The only absolute truth... is price. If prices are trending higher, the market is going higher. Lower, and we are trending lower.

Two Kinds Of Traders

News events especially cause traders to make incorrect decisions, because they play on emotions. The urge to follow the crowd is normal. It is comforting. And in a strong bull market, it may just be correct.

But in most circumstances, letting emotions push you into making trading decisions costs traders money.

There are two kinds of traders.

1. Those who make emotional decisions based on any of the above.

2. And those who make money off of those who make emotional decisions.

Price Is Always Right

It is hard to accept that one aspect of the markets, price, could be the one thing that is guaranteed to make you a successful market timer or trader.

There are so many indicators, so much available analysis, but "price" is always right. It is "never" wrong.

The thousands of investors and traders who owned Enron at $90 felt confident in their positions. Many "averaged down" when the price started dropping. But we wonder, after all the billions of dollars were lost in the Enron collapse, how many felt that way when shares hit 50 cents.

Trend trading market timers "may" have bought shares at $90. But they were short most of the way down because they made their trading decisions based on "price."

When the price started to drop, they reversed their small losses and changed to short positions. Many made huge profits as they rode this stock down.

Losses, such as the billions lost by investors who held shares in Enron, are always reported by the media. But have you ever heard the media mention the other side of those losses?

All those losses went into someone's pockets!

How about the 80% decline in the Nasdaq in the 2000-2002 bear market? The losses were all over the financial press. But were the gains on the other side of those losses mentioned. Our Bull & Bear Timer was up close to 70% during that bear market.

Losses are news, gains apparently are not.

Market timers following price trends profited during these declines. They were windfalls. But you will never read about it in the press.

Following Price

Price is objective. You can faithfully follow prices and make timing decisions based on them. You are able to determine trend changes, and most importantly, to exit those positions if the trend was a false one.

And false trends "always" occur. Usually at market tops and market bottoms. But the losses in "trendless" markets are kept small by those who use "price" to establish trading strategies.

And when the trends do take off, the profits are made.

Market analysis is always subjective. It can not be trusted in trading decisions. Indicators work some of the time, but also can fail miserably. The financial news media is not even worth mentioning.

Only price can be trusted. Only price is always right. Only using price to determine trends can lead you to profitable timing and a successful investing future.

Conclusion

Market timers must follow the trading strategies faithfully. Every sell signal must be followed immediately, and every buy signal as well. Small losses are part of the game, but then large gains are also part of it.

Guessing how far a trend will go is useless. No one knows. Price makes the trend.

Discipline is the name of this game. Those who stand the test of time and make the trades, will over time, beat the markets, and will be investing winners.

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Handling Money - Money and Emotions

2006-12-02T19:44:00.000-05:00

Money and Emotions - Mark D Peterson

Money can be emotionally charged. Do you get emotional about your money situation? Making and keeping money is easy for some, and a burden for others.

Kara has a positive, thrifty money attitude, is grateful for blessings, and puts her money to work. Mary is frustrated, angry, always short of money and wonders why. Who do you resemble? Seeing and changing the emotions that keep you stuck frees you to create the financially independent and life you dream of.

Financial success is a learned skill. During my financial challenges, I learned about the joy of staying on a budget and living a simpler life in order to have balance and harmony. I encourage you to practice these attitudes and actions for prosperity and peace of mind:

Self Care: Care enough about yourself (and your family) to monitor your money flow and keep track of debt. Setting priorities helps you become dependable with money.

Healthy Emotions: Be willing to give up your negative emotions of anger, frustration, shame, guilt and sadness over money. Decide to move on.

Smart Choices: Commit to noticing what you spend money on, and monitor if your choices create stress or peace of mind. Choosing peace of mind results in responsible spending, a balanced budget, and money for savings and giving.

Self Responsibility: You are responsible for your money decisions! Own this responsibility without blame.

Plan: Make a spending plan (budget) to include savings as well as "needs", then "wants".

Action: Take action on your plan, stick to it, tracking your spending within your income, to reach your goals.

Self-Worth: Free yourself from the idea that self-worth is attached to material worth...then you will need less and your debt will lessen.

Integrity: Be consistently positive in what you think, say and do with your money. Connect your mind, body, and spirit with your actions to have peace.

Courage and Power: Have the courage it takes to make tough decisions about your financial limitations and make changes in order to make your life better in the future. You have the power to do this. "Tough now, easy later or easy now, tough later."

Harmony: Letting go of your past (but learning from it) and planning for your future, then taking action in the present moment brings harmony.

Generosity: Give of your time, talents, and money and open to receive an abundance of love, support and joy for yourself.

I invite you to begin today to change your attitude and your emotions, and then change your finances and your life to experience prosperity, peace of mind, and sleeping better. It's your choice!

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in and budget and credit counseling. Having the combined experience as a licensed as a Real-estate salesman, Mortgage Broker, Real-estate Broker, notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokes person of the Radio talk show “The Money Mentor”; Greg McTaggart is qualified to help you. http://www.settlemydebt.com

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Create Online Income From Home - WAHM Connections

Eliminate Debt - Create Wealth - Financial Planning for Beginners

2006-11-25T22:36:00.000-05:00

Financial Planning for Beginners - Tim Gorman

Financial planning at an early age may seem complicated, however it can be easier than you might think. At the age of 25 most of us are just beginning our married life, and there are homes and automobiles to buy and children to plan for. This leaves little time to plan for the future. These are some simple steps that you can take to ensure that you and your family will be able to handle unexpected emergencies and expenses.

* Buy Insurance

Insurance is one of the easiest ways that you can be sure that your family is protected financially in the event of an accident. Medical bills alone from one accident can cause a family to be in a state of financial distress for years. Although medical and automobile insurance rates are high, the return is much greater. Life insurance is also a very key factor in planning for your financial stability. In the event that a family member dies, you could be in debt for as much as $50,000 for funeral expenses. Insurance may seem like a useless expense when a family is deciding on a budget, however, the budget will be completely diminished in the event of an accident without insurance. Remember, the key word in the phrase "financial planning" is planning.

* Repay High Interest Loans

Some debt that is incurred has a higher interest rate than others depending on the type of loan and the time at which the money was borrowed. Many times car loans and student loans have the highest interest rates, while other debts like medical bills may have little or no interest accumulating. Although it might seem like a good idea to pay off bills that have a lower total balance to eliminate that payment, this is not always the best option. In the long run it is more beneficial to pay off the debts that have the highest interest rates first.

* Create an Emergency Money Account

Try and work out a plan so that your family will have a little extra money in case of emergencies. Even putting a minimal amount of money back from each paycheck makes a lot of difference. The key is to be consistent, decide on an amount a stick with it. Another option is to save unexpected income, such as gifts or tax returns, for emergencies. It is estimated that one should save at least 15% of their annual earnings in a savings plan; this amount will vary according to your particular situation.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.

A note from Tammy - Eliminate Debt AND Create Personal Wealth
to make sure you are getting the best life insurance coverage, I recommend eFinancial. They stand behind the bottom line figures they offer you for your desired level of coverage. Do your family a favor and check out what they offer you.

I agree with with Tim Gorman's financial planning tips for beginners with one exception. I have used the debt cruncher software that comes with Leo Quinn's Take Back Your Paycheck Again and there are times when it is to your financial advantage to indeed payoff smaller balances first while making minimum payments. With each debt eliminated, you can pinpoint where to put the extra money you have to invest in your debt elimination program. These finer points can make a BIG difference in planning for your own financial success. :-)

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Money - Wealthy, Middle Class, Poor - The Differences in How They Handle Money

2006-11-25T22:24:00.000-05:00

Wealthy, Middle-Class, Poor - The Differences in How They Handle Their Money

Believe it or not, middle class Americans are bigger spendthrifts than their wealthy counterparts, spending more for cars, clothes boats and other big ticket items than the rich. Don’t believe it? Well, it’s true, according to Thomas J. Stanley, Ph. D. and William D. Danko, Ph. D., who wrote the surprising 1996 book “The Millionaire Next Door.” Danko and Stanley studied the spending habits of millionaires and found that they’re usually exceedingly frugal, buying off-the-rack clothes, driving used cars and looking for deals wherever they can find them.

According to these authors, rich people are big on saving, routinely socking away about 20 percent of their money into investments and savings accounts. Very few drive current-model cars, and almost never lease them (unless it’s done through their company). Most also have what Danko and Stanley call a “go to hell fund,” enough accumulated wealth to last them for 10 to 15 years should they leave their jobs – jobs which most of them work at an average of 45 to 55 hours a week. Most millionaires buy their suits from mid-range department stores, spending more money on their children’s education than on the trappings of wealth.

But if you look at middle class people, you’ll often see what’s termed “conspicuous consumption” at work – a brand-new, leased SUV in the driveway, designer labels hanging in the closet, and credit-card debt up the wazoo, because the middle class income is stretched to its limit to pay for these luxuries. The difference between wealthy and middle class is one of income certainly, but often the biggest divide comes when you examine their net worth. The wealthy become rich – and stay rich – by living well below their means and investing their money for the future. A middle-class family, on the other hand, often undermines its own potential for wealth by overspending compared to what they earn, because they’re concerned with measuring up to their neighbors in terms of how big their house is, what sort of car they drive and the price tag on the clothes they wear.

One of the biggest financial challenges for those on the less privileged end of the spectrum is escaping from lower class income and spending, and elevating themselves to middle class. When you’re fighting to keep your children fed and to pay the rent on time, it’s difficult to conceive of how you can possibly invest any of your much-needed income for the future. Even the most frugal of working-class families find their resources stretched to the limit – everything that they need and buy costs the same as it does for people with higher incomes, so everything from gasoline to food to home appliances takes a much larger chunk, percentage-wise, out of their net income.

Can spending habits among lower income households be improved, though? Absolutely. As with middle-income people, there’s often a belief that they “need” certain items to fit in as average Americans – so they buy cars at high interest rates, video game systems for the kids, microwave ovens and brand name sneakers, leaving no money left over for savings.

The biggest difference between the wealthy and the not-wealthy is, it turns out, how tight they are with their money – the rich are better savers. Income plays a part, of course, but if you want to live a more comfortable life in the future, cutting back on your expenses today can go a long way towards making that dream a reality. Live within your income, reduce your credit debt, and spend wisely.

Starting 11 years ago, Jamie McIntyre took less than 5 years to become a self made millionaire. In the last 8 years as a world leading educator and success coach, he has touched the lives of 165,000 Australians and New Zealanders and recently people world wide, producing many millionaires in the process and helping many retire early. http://www.jamie-mcintyre.com

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Personal Debt - How to Get Out of Debt For Good!

2006-11-20T20:37:00.000-05:00

How to Get Out Of Debt FOR GOOD! - Dave Ramsey

Myth: I should pay off the debt with the highest interest rate first to get out of debt quickly.

Truth: You should pay off the smallest debt first to create the greatest momentum in your debt snowball.

The math seems to lean more toward paying the highest interest debts first, but what I have learned is that personal finance is 20% head knowledge and 80% behavior. You need some quick wins in order to stay pumped enough to get out of debt completely. When you start knocking off the easier debts, you will start to see results and you will start to win in debt reduction.

The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted.

First accumulate $1,000 cash as an emergency fund. Then begin intensely getting rid of all debt (except the house) using my debt snowball plan. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.

Build Momentum
Redo this sheet each time you pay off a debt, so you can see how close you are getting to freedom. Keep the old sheets to wallpaper the bathroom in your new debt-free house! The “New Payment” is found by adding all the payments on the debts listed above that item to the payment you are working on, so you have compounding payments which will get you out of debt very quickly.

“Payments Remaining” is the number of payments remaining when you get down the snowball to that item. “Cumulative Payments” is the total payments needed, including the snowball, to pay off that item. In other words, this is your running total for “Payments Remaining.”

You attack the smallest debt first, still maintaining minimum payments on everything else. Do what is necessary to focus your attention. Keep stepping up to the next larger bill. After the credit debt is taken care of, you are ready for the next baby step in your Total Money Makeover.

I have been broke. I know how scared I felt, and I know how fast I wanted to get out of debt. I know how you feel, and I have learned that what really works is unbelievably fierce, focused intensity.

This content is provided by DaveRamsey.com and may be used only in its entirety with all links included. Dave Ramsey is changing the face of America by helping people beat debt and build wealth with his best-selling book, The Total Money Makeover, and nationally syndicated radio show, The Dave Ramsey Show. Read more of what Dave says about getting out of debt.

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Credit Reporting - What Is A FICO Score?

2006-11-19T13:56:00.000-05:00

What Is A FICO Score?
Your FICO score or credit score as it’s commonly called is a very important calculation that can control whether or not you are eligible to receive credit and if eligible the terms you can receive credit under. Failure to understand the impact this score can have on you future purchasing power and lifestyle can be disastrous. This article will break down all the information you need to know regarding your FICO score.

As I mentioned above the FICO score is a numerical score that is based on your financial history as collected in your credit report. Creditors can use this number to evaluate whether or not you are able to pay a loan back on time. The higher the score the more likely you are to pay off a loan on time and the less of a credit risk you pose.

The FICO or credit score ranges are broken down as follows:

720-850 - This represent the best score range

700-719 – Able to obtain favorable financing terms

675-699- This is still a decent score range

620-674 – May have trouble obtaining favorable credit terms

560-619 – May have trouble obtaining credit

500-559 – Time to improve your score

Your credit score is broken down into 5 distinct categories each with their own importance based on a percentile. The 5 categories and the percentage they represent I relation to your credit score are as follows:

Payment History – 35%

Amounts Owed – 30%

Length of Credit History – 15%

New Credit – 10%

Types of Credit Used – 10%

Your payment history contains information on credit cards, retail accounts, installment loans, finance company accounts and any mortgages you may have had. It also details any past due accounts and the amount owed on hem. You will also find bankruptcy information as well as other adverse information in regards to your credit history. This is why it warrants a 35% piece of the pie.

Your amount owed is generally speaking the amount owed on any accounts you currently have and number of accounts with balances. Note that it has a large impact (30%) on your credit score. The length of your credit history details when accounts were opened and the last activity on those accounts. New credit shows the number of recently opened accounts by the type of account and number of account inquiries. Finally the type of credit used is a snapshot of what types of financing you have held.

Other information that is included in your credit report but has no bearing on your FICO score includes your race, age, where you live and your sex and employment information. Although the FICO score doesn’t use these factors the employment information may be used by other companies and creditors to help in their decision making process.

There are three major credit-reporting agencies - Equifax, Experian and TransUnion that have your credit information on hand. Each of these credit bureaus maintains their information separately, which can cause the financial data to be slightly different among the three of them. Most experts agree that in order to get the best snapshot of your financial history and credit worthiness it is a good idea to request a report from each of the reporting agencies. It is also highly recommended that you actually review your credit report once a year in order to identify and correct any errors before they cause any future potential problems when you apply for credit. Recent changes in the laws no allow for consumers to request 1 free credit report each year in order to look for any such errors.

Here is the contact information for each of the three reporting credit bureaus:

Equifax: (800) 685-1111, www.equifax.com
Experian: (888) 397-3742, www.experian.com
TransUnion: (800) 888-4213, www.transunion.com

As you can see your FICO Score is a very important number that represents your financial trustworthiness in the eyes of creditors. Failure to properly monitor it could cause you future headaches when it comes time to apply for any form of credit.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and credit repair information that you can research in your pajamas on his website.

To Take Back Control of Your Money - Your Debt ... Get Your Own Copy of Leo Quinn's Take Back Your Paycheck Again!

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Eliminate Your Debt AND Find Financial Success

2006-11-18T11:40:00.000-05:00

Looking For Financial Success - When it comes to success with money, you don't have to look very far. You already have everything you need to be financially successful. You just have to start using it.

It doesn't really matter how much money you make. What matters is how much money you spend. I've been broke at $40,000 a year and $250,000 a year. There are a lot of upper-class income families out there that are struggling to make ends meet. It is all in how you manage your money.

And really, that management just take a little time. You have to take the time to sit down and really analyze your financial situation.

Start with your budget. A budget is an essential part of your finances. Without it, you have no plan. No way of telling where you are going. No way to know how much you can spend on something. How many times have you spent all of your paycheck the day you got it? Between bills and a splurge here or there, it is all gone.

A budget can be as simple as a list of your bills and expenses for the month. You have to make that list equal less than your income amount. Otherwise, you don't have enough money to live. When you write down everything you are spending in a month, you can see where you can and can't cut back.

Now think about the things you really want. These are your goals. They can be as simple as getting out of debt and retiring comfortably. Set yourself some short-term goals that are purely for your enjoyment. They can include saving money for a new living room couch or a vacation next summer. These are the little things that can really help keep you motivated.

Or you may find that you need to pay off your credit cards. No matter what the goal is, the time to start working towards it is now. Once you have a working budget, take steps to start meeting your goals.

Start saving for an emergency fund. This is a vital part of your finances. It will cushion your budget from any emergencies, such as car repairs, illness or job loss. You should try to have at least three months of expenses in your emergency savings. But start with what you have and let it build up. Something is better than nothing.

Review your insurance policies. Make sure that you have enough coverage for what you own. You can take this time to shop around for cheaper coverage. You never know where you can save. It is a good idea to review your insurance needs and your will at least once a year. A lot can change in a year.

After you have spent the initial time setting up your financial management, all you have to do is maintain it. This can take a few minutes a day to keep your check book in balance and your budget in mind. Or take an hour a week, like every Saturday evening. Remember that your finances are constantly changing and adjustments must be made. But once you've taken the time to start to manage your finances, you will find that you spend less time thinking about them and less time stressing about your money situation. Take the time and take action.

Martin Lukac represents www.RateEmpire.com, an Internet consumer banking marketplace. RateEmpire.com is a destination site of personal finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage guides and financial rates and information. RateEmpire.com also operates a financial portal #1 American Financial, found at www.1AmericanFinancial.com and San Diego loan portal www.LendingSanDiego.com

Eliminate Debt - 10 Debt Elimination Program Secrets You Should Know About!

2006-11-16T17:31:00.000-05:00

10 Debt Elimination Program Secrets You Ought To Know - Paul Moss
When it comes it debt elimination programs, many people have been having problems in getting the right ones which would suit their needs. In reality there are few questions and homework which you need to do in order for you to best evaluate these debt elimination programs.

First thing first, the biggest question has got to be with you. Just ask yourself, what kind of debt are you currently dealing with? Are you dealing with mortgage debts or credit card related debt elimination?

Since each debt elimination program might differ from one another, answering the above question might prove to be vital in your quest to get the right debt elimination services or companies.

Once done, you can execute the next step, which is, reducing your debt interest rates as much as possible. You can simple reduce your interest rate debts by refinancing your home equity or with a personal loan.

Doing this will definitely close out high interest rate on your mortgage debt as well as improving your credit card consolidations

Most of the debt management companies which are offering these services will often reduce the debt interest rates on your unsecured loans. More often than not, these debt management service providers will also have the potential of setting a limit for you to open additional accounts for a year or more.

You can also take on a drastic approach in your debt elimination program by consolidating all your debts into a long term loan. You see, by doing this you’ll be extending the length of your debt payment, thus lowering your monthly debt installment payment. However, the side effect is that you will need to pay more interest rates during the course of the loan.

Another option to your debt elimination program is to engage a debt negotiation service, which will mainly work with your creditors to eliminate your debts. Since not many creditors will agree to reduce your debts, but you’d be surprise where some creditors will reduce your accounts by at least 10% or more.

It’s not always late for you to engage on a professional company to help manage your account. Most people will say that debt elimination company will help you get out of unsecured debt in less than 5 years or so.

To help pay off your debt sooner and save on interest, consider consolidating your loans so your payments are automated.

Last but not least, spend your time wisely in getting the right debt elimination program. Always ask for more information on the services offered before signing on the contract. Doing this will give you more viable option in accessing the market rate for these debt elimination programs.

Many people failed to realize that they can reorganize their debts to the maximum advantage. On his website at http://www.mydebtelimination.info, Paul Moss shares his insights on debt elimination strategies as well as information on credit card debt elimination.

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Debt to Wealth - John Cummata on The Building Blocks to Wealth

2006-11-05T13:22:00.000-05:00

The Building Blocks to Wealth - John Cummuta

The very first step you'll want to take after becoming debt-free is to set up an emergency fund. Why should you be debt-free before setting up such a fund?

The answer lies in the math. Most financial professionals recommend an emergency fund equal to six times your monthly cash flow requirements, so you can go six months without working and still pay all your obligations. Your living expenses with debt are greater than they will be when you are debt-free, so you'd need a larger emergency fund if you start while in debt. To compound the problem, the amount of extra cash you have each month is smaller when you're in debt than when your debts are gone. So, if you have to save up a large amount of money using a small amount of cash each month, it will take a long time to gather your emergency fund. Therefore, it is better to pay-off debts first, then set-up an emergency fund.

The second step to building wealth is a solid understanding of an asset vs. a liability from an investor's perspective. It is different from a banker's perspective. For example, your car is a liability because even if you own it outright, it will not appreciate in value-whereas a banker would consider a fully owned vehicle an asset. Your student loans are liabilities because, even though you used them to get an education that may bring you more income, the money for the loan is benefiting the lender. Your children, while a great source of joy in your life, are probably liabilities as well.

Your antique doll collection, your gold coin collection, and your diamond engagement ring may also be assets. However these kinds of "hard assets" are not the best investment choice because they typically hold their value instead of increasing their value. Your home-based business, if it is operating a profit, is an asset. Your life insurance policy, although it becomes income when you're dead, is a liability when you're alive because it creates negative cash flow. Your home is yet another liability because it too causes negative cash flow. However, real Estate can be an asset in your portfolio if it is investment real estate that you rent out, or if you are investing in Real Estate Investment Trusts (REITs).

And finally, focus on spending your money on assets, or investments versus liabilities. Investing means - regularly putting your money into good securities and letting it appreciate over time. The best tool to guarantee the regularity of your investing is called Dollar Cost Averaging. Not only does it provide consistency for your investment program, but it actually aids in your assets' appreciation. Dollar Cost Averaging is when an investor takes a set amount and invests it regularly; usually monthly. And these investments are made regardless of whether the market is up or down when the investments are made. This is the opposite of a market-timing strategy. You're not trying to time your investments to "buy low." You're buying consistently, whether security prices are low or high. But this systematic approach actually uses the market's up and down movement to increase the value of your investments.

Learn more strategies from John Cummuta from Transforming Debt into Wealth

Wealth Cycle - Why You Should Pay Yourself Before You Pay Your Creditors

2006-11-04T21:12:00.000-05:00

Why You Should Pay Yourself Before You Pay Your Creditors - Loral Langemeier

Got bills? We all do. But, who do you pay first when after you deposit your paycheck?

Most people pay their bills first, and play with what little is left. Sometimes, they'll put a small amount into a "savings" account, which might earn all of 2% interest.

Is this you? What if I told you that you should be paying yourself first, and not into a savings account, but a "wealth account?"

Only read the rest of this article if you want to become wealthy.

Why? I intentionally became a millionaire before I was 35, and now I teach others how to become millionaires. One of the first things I tell them is to pay themselves first, putting the money into a special account called a wealth account.

Investing - in yourself and in building assets - should be your first priority

Millionaires make investing a priority. They pay themselves first into this special wealth account.

I call the payment you make to your wealth account your Wealth Account Priority Payment (WAPP). As the name implies, this payment is a priority, comparable to your mortgage or rent, bills, or any other priority expenses. Your WAPP should be a specific, set amount, and paid consistently, come rain or shine. Most of my clients make their WAPP monthly.

The concept of paying yourself first is often misunderstood. I've even heard financial advisors confuse this with putting money into savings. I've seen others tell people not to start a Wealth Account if they are in debt. None of this advice will support and create lasting and ever-growing wealth.

If you want to be a millionaire, you have to act like one today. And all millionaires use something similar to the process I call The Wealth Cycle™. It's a process in which the money you make is invested in a way that makes you more money. (I explain this concept in detail in my book, The Millionaire Maker). The investing aspect of The Wealth Cycle is crucial to its success.

Pay yourself before you pay down your debt

Now this may sound counterintuitive, but I don't care how much debt you have. You still need to make your Wealth Account a priority. Here's the 10 second lesson from the millionaire maker:

You make money, put a portion of that into a wealth account. Your wealth account is used to invest in money-making assets. Then, pay what you can towards repaying the debt. In the mean time, the income from your investments grows, getting you out of debt faster! Once the debt is paid, you still have the income from the investments.

What's important is not the amount of your WAPP. The key is a) starting it immediately, and b) getting in the habit of making it. If you are barely making ends meet every month, make your WAPP only $10. Or even 10 cents, if need be. Then as your income increases, raise the amount of your WAPP accordingly.

Once you have gathered enough money to pursue a lucrative investment - and believe me, some times all you need is a just few thousand dollars - then you seek out a wealth coach, a mentor, and other specialized professionals who can guide you on choosing the best investment for your needs. And you'll soon see just how quickly you can build wealth when using the Wealth Cycle.

Think of it this way: every month you don't make your WAPP compounds into days you're not creating wealth. Which means you'll stay in debt longer. Or simply keep the status quo. Isn't it time you took control of your financial future?

Wealth building is possible for anyone who learns and uses the right skills at the right time. Loral Langemeier literally creates millionaires, and she does it using a well-honed and tested system that anyone can learn. Creating sustainable wealth does not need to remain a mystery! Order your copy of The Millionaire Maker today: http://www.themillionairemakerbook.com

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Your Home Budget - Tough Love Goes a Long Way!

2006-09-21T20:29:00.000-04:00

Budgeting: A Tough Love Way to Handle Your Household Budget
By Douglas Hanna

Developing and living by a household budget is by far the best way to get your expenses under control which, in turn, can mean a much less stressful life.

However, many families find it very difficult to stick to a budget. It does take hard work and a lot of self-discipline, at least in the beginning. The good news is that most families find the longer they can stick to a budget, the easier it becomes. This is because sticking to a budget eventually becomes an unconscious habit, just like driving a car. And once it becomes a habit, the budgeting process just sort of goes on cruise control and requires much less thought or effort.

But what do you do during those first three, four or six months, when sticking to a budget feels so difficult?

There are several answers to this. The first is to make sure your budget categories are realistic. You may think you can get by with $100 a week for groceries, but is this real? Do you have checks or receipts that verify how much you have been spending at the grocery store? You really need to know. Otherwise, you may budget too little. In turn, this becomes frustrating because you will always be over budget.

Second, make sure you have all categories covered. There are some categories that are easy -- rent, mortgage payment, utilities, car payments, etc. But think hard about all other categories such as clothing, eating out, prescriptions, pet care, tuition, books, allowances, movies, CDs and DVDs, and computer software and games, to name a few. If you don’t budget for all these kind of expenses, I promise they will bust your budget.

Finally, if you find you just can’t seem to stick to your budget, here’s a sort of tough love answer.

Go to your nearest office supply store and buy a box of #10 envelopes. Take them out and label one for each of your budget categories. Then write on each envelope the amount you have budgeted for that category.

For the purpose of this exercise, it is not necessary to break down general categories into subcategories. For example, you can label one envelope “entertainment” and not worry about envelopes for “movies,” “eating out,” “DVDs,” etc. Just be sure the number you write on the envelope for any general category represents the sum of all its subcategories.

When you next get paid, cash your paycheck and bring it all home in $50, $20 and $10 bills. Then put and amount of cash in each of the envelopes equal to the amount you budgeted for that particular 6category.

Now, as you need to pay bills or buy groceries, etc., use the cash in the corresponding envelopes to pay them. You will know when you have reached the budgeted amount for any category because its envelope will be empty. What do you do when you find an envelope is empty? You do nothing. That category is all finished for this pay period. If the envelope is empty and you still have expenses, either you haven’t budgeted correctly or you have overspent. You might be able to fudge and take funds from another category envelope. For example, if you have a week to go and are $40 short for groceries, you might be able to take the $40 out of the entertainment envelope. Just keep in mind this means $40 less for entertainment.

Do this for a few months and I promise you will not only learn to budget accurately, you will learn to stick to your budget.

Here's another good answer. If you're looking for a great place to vacation, choose Denver. Denver is unique in that it offers the best of two worlds -- the fun things to do and see that you find only in a big, sophisticated city, plus the breathtaking scenery, unforgettable vistas and amazing wildlife you find in our nearby Rocky Mountains. To learn more about the best Denver vacation, just go to Just go to http://www.best-denver-vacation.com

Douglas Hanna has lived in the Denver area for nearly 35 years and is an expert on both Denver and Colorado. He is also the author of more than 120 articles on Denver and Internet marketing.

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One myth that keeps people in debt longer, don't believe it.

2006-09-16T08:39:00.000-04:00

This one myth of how to pay of debt faster is enough to set people up for failure. Dave Ramsey hits the nail on the head when it comes to a major myth of debt relief. Leo Quinn of Take Back Your Paycheck Again preaches the same thing.

How to Get Out Of Debt FOR GOOD!
By Dave Ramsey

Myth: I should pay off the debt with the highest interest rate first to get out of debt quickly.
Truth: You should pay off the smallest debt first to create the greatest momentum in your debt snowball.

The math seems to lean more toward paying the highest interest debts first, but what I have learned is that personal finance is 20% head knowledge and 80% behavior. You need some quick wins in order to stay pumped enough to get out of debt completely. When you start knocking off the easier debts, you will start to see results and you will start to win in debt reduction.

The principle is to stop everything except minimum payments and focus on one thing at a time. Otherwise, nothing gets accomplished because all your effort is diluted.

First accumulate $1,000 cash as an emergency fund. Then begin intensely getting rid of all debt (except the house) using my debt snowball plan. List your debts in order with the smallest payoff or balance first. Do not be concerned with interest rates or terms unless two debts have similar payoffs, then list the higher interest rate debt first. Paying the little debts off first gives you quick feedback, and you are more likely to stay with the plan.

Build Momentum
Redo this sheet each time you pay off a debt, so you can see how close you are getting to freedom. Keep the old sheets to wallpaper the bathroom in your new debt-free house! The “New Payment” is found by adding all the payments on the debts listed above that item to the payment you are working on, so you have compounding payments which will get you out of debt very quickly.

“Payments Remaining” is the number of payments remaining when you get down the snowball to that item. “Cumulative Payments” is the total payments needed, including the snowball, to pay off that item. In other words, this is your running total for “Payments Remaining.”

You attack the smallest debt first, still maintaining minimum payments on everything else. Do what is necessary to focus your attention. Keep stepping up to the next larger bill. After the credit debt is taken care of, you are ready for the next baby step in your Total Money Makeover.

I have been broke. I know how scared I felt, and I know how fast I wanted to get out of debt. I know how you feel, and I have learned that what really works is unbelievably fierce, focused intensity.

This content is provided by DaveRamsey.com and may be used only in its entirety with all links included. Dave Ramsey is changing the face of America by helping people beat debt and build wealth with his best-selling book, The Total Money Makeover, and nationally syndicated radio show, The Dave Ramsey Show. Read more of what Dave says about getting out of debt.

Home Budget - Budgeting Your Savings ~

2006-09-15T22:01:00.000-04:00

Budgeting your Savings - Did You Let Your Piggy Bank Get Away? By Cheryl Johnson

I think most of us have at some point in our lives. Some how we forget to feed the little piggy. And, like most neglected “pets”, your piggy bank will disappear if you don’t feed it. A personal budget is important to create financial independence and setting goals for feeding that “piggy bank” should be an important part of your budget!

The most successful financial plans allow you to INVEST IN YOURSELF! It just makes good sense. A plan to build financial security should always be considered essential to any budget.

Even if you’re on a plan to reduce debt, you need to include plans to build a foundation for future financial security. A good savings routine and variable expense account are essential to building a strong foundation for financial independence.

A variable expense allowance in the budget is important to save for those expenses that seem to “hit us unexpectedly”. Funny thing is, we know these expenses will occur. They are an inevitable fact of finances for most of us. So, why do we call them unexpected? I can’t explain why, but there are many of us who make this very BIG mistake in our budgeting.

Some expenses don’t occur monthly. Some are paid out every now and then, quarterly, yearly, or bi-monthly, or semi-annually. These are expenses like car insurance and maintenance, home insurance and maintenance, property taxes, income taxes, medical expenses (prescriptions, deductibles, co-pays), pet care, school expenses (supplies, trips, activity fees, books), and clothing. Some of these are huge expenses that can put a ripple in any good budget if not planned for.

Most of us have good intentions, but it’s easy to fall prey to the credit card companies without a plan to cover all of these “unexpected” expenses. The term still makes me chuckle. I mean, don’t we “expect” to wear clothes? It’s even funnier to me knowing that I was guilty of this very thing. Poor Planning! Not expecting what should be expected.

Lesson ……….Don’t forget about this expenses in your budget. They will sabotage the best of intentions!

The other essential ingredient to a successful budget is a savings plan. A good savings plan should have a goal to reach at least the minimum amount necessary for you to survive for a three to four month period. It may take time, but this a strategy that provides a fail safe against a financial crisis. Crisis such as serious illness or job loss.

Trying to save money by cutting your savings budget out will eventually backfire on you. It is essential to build financial security, in order to remain debt free, you must not compromise your savings expense.

Only if there is no way to avoid it should you reduce the amount of your monthly savings commitment.

Start with 2-4% of your monthly income if you have to. A little is better than nothing, and then you can build it up from there to at least 10% of income as funds become available.

Some Important Points:

Applying extra funds to your debt first will not help you gain financial security. Emergency savings and variable expense savings goals should be met before debt is reduced in order to remain debt free. After all, these sources will be the foundation you will fall back on in order to remain debt free. If you can build a reserve for emergencies you won’t have to use those nasty credit cards. This is an important defense that builds financial security. If you use a good debt reduction plan, debt will reduce, and in a reasonable amount of time. As long as you stop creating debt. Just be patient.

Paying more on your debt, instead of saving, is not going to help you pay for that major car repair when the car breaks down. It will most likely do the opposite of your intended plan and send you running for the credit card to bail out.

Of course once you have reached your goals for savings and your variable expense account, then you should start applying extra funds to your debt reduction plan.

Using money saving tips reduces expenses in your budget in an effort to help you build that financial security. Through saving money on everyday expenses and living a frugal lifestyle, you free up monies to apply to your savings and variable expense account. These are the defenses that build a strong foundation for your financial independence.

These "defenses" prepare for the inevitable expenses that will arise. Many of us had just forgotten to plan correctly for these types of expenses. That's how we got in the "big red mess" to begin with. Properly preparing for necessary variable expenses is your defense against feeling the need to use the credit cards.

Once you have balanced your expenses with your income, you have created a Budget for Debt Free Living. Congratulations! You are on your way to financial freedom and security. Enjoy! This concept is simply “living within your means.” Something that many of us in today’s “plastic society” have forgotten to do.

Live Debt Free to Be Free. You Deserve It!

Cheryl Johnson is a mother of four helping herself and others become and stay debt free. Publisher of Simple Debt Free Living at http://www.simpledebtfreeliving.com - A self-help plan, ideas, and resources for debt management, household budget planning, frugal and debt free living, and extra income opportunities. Money saving tips for groceries, clothing, gifts, home decorating, weddings, and much more. A money saving tip a day keeps the credit card away.

Be Debt Free in 3 to 5 Years - No Bull, To learn more - Click Here Tam

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Home Budget - You're headed for trouble if ...

2006-08-24T13:25:00.000-04:00

you spend more than half your take home pay on credit bills and loans. How long has it been since you sat down and added up your monthly payments to see how they compare to your monthly take home pay? When I worked outside the home, I got paid every two weeks so bills got paid every two weeks and I never seemed to have a handle on how much overall I was paying out on credit cards, student loans and my car loan... let alone my mortgage at the time. Now, I don't have a mortgage or car loan but my credit card bills can still get out of hand.

I saw a sign outside a bank offering heating loans. Granted, I live in Maine and with winter coming on... people are already talking about how to pay for oil this winter. The thought that banks are now offering heating loans around 6% looks mighty attractive because you wouldn't want to get strapped mid winter putting heating oil payments on a credit card with an APR of 12% or higher. Some people got in early to lock in on a heating oil price but last winter it cost some people up to a thousand dollars just to fill the tank.

Now what does heating oil have to do with being in trouble with credit? Everything! Do the math. See what percentage of your take home pay is going to loans and credit cards now. If you are spending between 40-50% of your take home pay on loans, you are pushing the limit. Once heating oil season comes OR another big ticket problem (car repairs, plumbing, etc) you will not be in a position to handle the new bills.

There is a home budget software called the Debt Cruncher that comes with Leo Quinn's ebook "How To Take Back Your Paycheck" that gives you the skinny on the fastest route to paying off credit cards and loans. It's always a good idea to get a handle on debt but somehow when it's nearing fall and heating oil prices plus Christmas coming... now is a great time to head money problems off at the pass. :-)

Tammy
WAHM Connections

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Money Tips - Best Ebay Secrets for Buyers

2006-08-14T20:28:00.000-04:00

Money Tips - Best Ebay Secrets for Buyers (c) 2006 by Jason James
Auction Resource Network

Shopping on Ebay is perhaps one of the most exciting ways to find deals. When that auction time is winding down and you are in position to be the winning bidder, the pulse quickens and the excitement builds. Only five more minutes….you can almost picture the item in your home and the thrill you will get when you show it off to friends and family. And then, as the last minute winds down, a bid comes in that beats yours and you are crushed. Someone knew some Ebay secrets that you have yet to learn!

Actually, they are known as snipers and they hover like vultures during the final few minutes of online auctions to swoop in for the kill and steal away an item that others have been fighting over for days. But, snipers are part of Ebay auctions and you just have to beat them at their own game. Still, there are other Ebay secrets that buyers can use to find the best deals on items without acting like vultures and swooping in at the last minute to make off with a great bargain.

No Picture

There are a lot of people that simply will not consider an auction unless it comes with a picture. Honestly, this is a good idea but some really great bargains can be had for people willing to dig a little deeper.

If the product description is excellent and the buyer has a great feedback rating, it might very well be worthwhile to place a bid on that item because you will not have much competition. The fewer people you compete with during Ebay auctions, the better the deal you are likely to get.

Bad Ending Times

Online auctions with lousy ending times are far less likely to be stalked by snipers. Any sellers that end bidding on major holidays or during major events on television such as the Superbowl-well, they are asking for someone (just like yourself!) to make off with their item for a great bargain. Shopping during off-peak times and hours is one of those Ebay secrets that will help you land some truly great deals and avoid most of those sneaky sniper types!

Poor Descriptions

Let's face it, some Ebay auctions are hosted by people that just cannot spell or who provide very little information in the description. Many of the Ebay elite will not even bother with such listings and move on to other targets. But, like the really great Ebay secrets, there may be a treasure waiting for you if you are willing to ask some questions and get some additional information. So long as you get what you want at a great price, what do you care if the person can't spell?

You are always going to contend with the snipers and millions of your closest friends when bidding in Ebay auctions. Missing photos, misspelled words, and horrible ending times may just scare enough of the competition away to allow you the chance to net a great deal. Just do your homework and ask the buyer enough questions until you are either satisfied that the product is legitimate or decide to move on.

Jason James is a 10 year Internet marketing veteran and an eBay Seller of 4 years. His website "The Auction Resource Network" reveals his inside secrets, tips, and sources that help him pocket over $10,000 per month on eBay. His proven step-by-step system shows even users with little or no business experience how they too can make huge profits selling products at online auctions.

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Small Business - Plan for a Pain Free Tax Season Next Year Now

2006-08-10T14:58:00.000-04:00

A Pain-Free Tax Season: Organization Tips For Small Businesses
By Leo Quinn

What are you doing this January? If you’re a small business owner, you’re getting together your tax records to hand-deliver to your accountant. Or, you’re firing up your pencil sharpener and setting aside 8-10 days to do your taxes yourself.

If you’re the type who scrambles to find receipts, statements and other financial documents, you probably think tax season is a huge headache.

It doesn’t have to be.

You’ve probably heard that any successful business needs to create systems. Systems allow you to thrive, because they will ensure that your business keeps working even when you aren’t. You can teach your systems to others (employees, partners, downlines) and exponentially increase your revenues, while maintaining great customer service.

Same goes for recordkeeping. Take some up-front time to plan a system and put it into place. Then, all that remains is to follow the system, consistently and diligently.

Do you use an accountant to prepare your taxes?

If you do, get your money’s worth! When you deliver this year’s records, ask: “What’s the best recordkeeping system you’ve ever seen? Who’s your favorite client at tax time and why? How do they do it?”. Every accountant I’ve talked to has a client that’s come up with a superb way to track tax information. So why re-invent the wheel? Learn their system, and copy it.

A Paper System That Works

If you can’t beat ‘em, join ‘em. Rather than develop your own way to track revenues and deductions, use the IRS’s system. Create a business activity tracking sheet right from the schedule you use to file your taxes.

Start by grabbing a copy of your business entity’s tax form at www.irs.gov. For example, if you’re a sole proprietor, you would use a Schedule C in conjunction with a Form 1040.

To create your tracking sheet, set up three columns. In the first column, list every line item from your tax schedule. If you use Schedule C, you’d start by listing your revenues: “Gross Receipts”, “Returns and Allowances”, and so on. You’d continue with expenses: “Advertising”, “Car and Truck”, “Commissions and Fees”…until you reach the end of the IRS form.

Label the second column “MTD” for “Month-To-Date” and label the third column “YTD” for “Year To Date”. Make 12 copies of your new tracking sheet.

Take twelve manila folders and label them with each month of your fiscal year. Make sure to include the fiscal year on the label, too. Put one of your tracking sheets in each folder.

Now for the system. Each month, put all your receipts, statements and reports in the appropriate folder. On the last day of the month, total your business activity in the MTD column using the appropriate line items. To calculate the YTD column, simply add the current month’s MTD to the previous month’s YTD. (Your YTD is a running total for the year.) When you reach the final month of your fiscal year, the YTD column will represent your final tax figures.

Prefer software?

Just because you use a software program such as Quicken, Peachtree or Quickbooks doesn’t mean your financial information is readily accessible at tax time. You still need to make sure your paper records back up your digital entries.

Take twelve manila folders and label them for each month of your fiscal year. Again, don’t forget to add the year.

Put all your receipts, statements and other supporting documents in corresponding monthly folders. On the last day of each month, run income statement and balance sheet reports from your software for the month you’re closing out. Put these reports in the manila folders, too.

When the year is over, run final reports from your accounting software covering the entire fiscal year. Bundle your manila folders together and put your year-end reports on top.

Deliver to your accountant; he or she has everything they need to put together your tax return.

Another variation on this system: Create folders for each line item on your tax return. Again using Schedule C as an example, you would create a folder for “Advertising”, another for “Car and Truck Expenses”, and so on. Put supporting documents in the appropriate folders. Your accountant will likely work off your software reports and use your supporting documents to double-check your figures or seek additional deduction opportunities.

Final tips for success

A great system isn’t worth beans unless you actually use it. Schedule your monthly recordkeeping tasks in your PIM or daily planner. Make it a habit to regularly file business documents and/or make entries in your accounting software. A good rule of thumb is to schedule at least one hour a week for recordkeeping.

If you think your time is better spent elsewhere, hire someone to do your recordkeeping for you.

Either way, when next tax season rolls around, you won’t have to pull out the extra-strength headache tablets. You’ll just pull out your files instead!

Copyright 2006 Leo J Quinn Jr Enterprises, LLC

A financial educator for over ten years, Leo Quinn Jr. specializes in helping people get out of debt and stay that way. His “How to Own Your Paycheck Again” program has helped thousands of families improve their finances and escape the debt trap. Learn more at http://www.OwnYourPaycheck.com

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Money Handler - Top 10 Ways to Cut Spending

2006-07-25T17:26:00.000-04:00

Top 10 Ways to Cut Spending - (c) Kristine McKinley

Do you run out of money before you run out of month? Do you wonder where your money goes each month? Do you struggle to find money to invest for retirement, emergencies and other financial goals? Here are 10 tips to cut your spending and stretch your dollar to the max:

1. Consider dropping your home telephone line. Your cell phone is probably all you really need, and most likely it has free long distance. You could save $30 or more per month by dropping your “land line”.

2. Cut back on trips to Starbucks or other premium coffee shops. Often called the “latte factor”, spending several dollars per day on luxuries like premium coffee can really add up. For example, if you spend $4 for a cappuccino five times a week for 50 weeks out of the year (you’re on vacation the other two weeks), you would spend $1,000 in a year. Try treating your trip to Starbucks as a treat instead of a habit. You’ll save money and probably lose weight too!

3. Pay your mortgage payment bi-weekly instead of monthly. You’ll pay less interest and pay off your mortgage faster.

4. Carry cash instead of credit cards. Psychologically it’s harder to spend cash than it is to use the credit card. You’ll spend less and save on interest charges.

5. Use the “envelope system” for groceries, dining out, entertainment, and other discretionary spending categories. This will help you track how much you spend in these categories as well as prioritizing your spending.

6. Raise the deductible on your homeowners and auto insurance policies. It’s not wise to file claims for small losses anyway (insurance companies love to raise rates after you file a claim), so a higher deductible will save you money now and in the future.

7. Buy regular gas instead of premium. Most cars don’t need premium gasoline. Also, take public transportation if it’s available in your area. Take advantage of “park and ride” and carpooling options.

8. Plan your purchases to avoid impulse buying. Take a list with you to the grocery store and stick with it. Studies show that impulse buying can add $10-50 to your grocery bill – ouch!

9. Go to the library instead of the bookstore. If you’re an avid reader, give yourself a book budget for books that you will want to keep, and go to the library for everything else.

10. Take a vacation at home. Check out all the local sites and happenings. You’ll rediscover your hometown and save on travel and hotel costs.

These are just a handful of ways you can cut spending and stretch your dollars, but if you follow these tips you’ll discover you have more money at the end of each month to apply to other financial goals, such as saving for college, retirement or just for a rainy day.

Kristine A. McKinley, CFP, CPA, and founder of Beacon Financial Advisors, teaches individuals and families how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis.

To sign up for free financial planning tips, worksheets, checklists and more, visit Beacon Advisor

---------------------------

Note from Tammy - Another great resource is Leo Quinn's Take Back Your Paycheck Again - a home budgeting software and debt elimination ebook

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How Much Does That Sofa Really Cost You? The Cost of Consumer Debt

2006-07-14T16:12:00.000-04:00

How Much Does That Sofa Really Cost You? The Cost of Consumer Debt. - Leo Quinn

Let's talk about consumer debt. You know, the kind you rack up because you really need stuff.

Your sofa is looking pretty nasty. It’s covered with Kool-Aid stains,and throw pillows are hiding threadbare spots where the tufting peeks through. You even had to throw down some plywood to keep the pillows from sagging.

Time to go out and buy a new one, right?

Not if you don’t have the cash.

Here’s why that new sofa is going to cost you a lot more than the $800 sticker price if you go into consumer debt to buy it.

Let’s assume you buy the sofa as well as matching loveseat and end tables for a grand total of $2000. You finance your purchase through the furniture store for three years at an interest rate of 21.45% (let’s leave out the “no interest for two years” deal for a minute).

Your monthly payments will be…drum roll, please…$75.

“Wow”, you think. “That’s pretty affordable.” Sure it is.

Until you count the true cost of that sofa.

Let’s assume you’re 30 years old and you’re going to retire at 65. Let’s also assume you have access to a 401(k) that your employer matches at 50%, you can earn a 10% average return on investments, and your combined federal and state tax brackets are 20%.

If you pay for your furniture with cash and invest the $75 a month in your 401(k) for three years instead, you’d have $4,330 more in your account at the end of the three years (plus your sofa). Now keep that $4,330 in your 401(k) without any additional investment and in another 32 years, at retirement, it will have grown to $83,112.

So, basically, your sofa cost you $2,000, plus $700 interest, plus $83,112 that would have grown over 32 years in your retirement account.

Final sticker price: $85,812.

Yikes.

Here’s an alternative plan: hang on for another two years, save $80 a month in a money market mutual fund or savings vehicle that earns at least 4%, and use cash to pay for your new living room set.

Final sticker price: $1,920

Here’s an even better alternative plan: hang on for another two years, save $80 a month, and after you buy the sofa, put $80 a month in your 401(k) instead (you were already living without it for two years).

Final sticker price: $1,920, plus an extra $815,699 in YOUR bank account by age 65.

Now what about those “no interest for two years” deals? Well, you can certainly take advantage of those, if you’re disciplined enough to pay off the balance in less time. Most people aren’t.

You can use this strategy for every major purchase you make.

The cost of consumer debt is a big deal, when it’s compounded by time, interest and 50% employer matching.

So next time you hit the furniture store and the salesman is telling you, "It’s only going to cost you $75 a month", you’ll know better. Tell him or her, "Nope! It’s actually going to cost me around $85 grand. See you in two years."

Avoid consumer debt, and you're well on your way to a much stronger financial future.

Copyright 2006 Leo J Quinn Jr Enterprises, LLC

A financial educator for over ten years, Leo Quinn Jr. specializes in helping people get out of debt and stay that way. His “How to Own Your Paycheck Again” program has helped thousands of families improve their finances and escape the debt trap. Visit Leo's website at: http://www.OwnYourPaycheck.com

Consolidate Debt? Create a Debt Management Plan Today

2006-07-12T21:05:00.000-04:00

Debt Management: How to Consolidate Debt On Your Own
By Leo Quinn

Need to consolidate debt?

Chances are, you’re doing what you can to pay it off, as quickly as possible. You want to be debt-free.

A worthy goal, to be sure.

But what do you do in the meantime?

Having a debt management plan is just as important as having a debt reduction plan. It can save you hundreds or thousands of dollars in interest, and maybe even reduce the total amount of time it takes for you to be come debt-free.

Here’s how to do it right, without going to pricey or questionable debt consolidation firms. And forget about those debt consolidation loans! You have most of the tools you need to do it yourself.

First, promise yourself you won’t take on any more debt. Put all your credit cards somewhere besides your wallet. One of my favorite spots is the freezer; by the time you thaw the cards to use them, you’ve probably changed your mind about your purchase. Why so drastic? Because you can’t manage your debt if you keep adding to it.

Now, you need to make a list of all the debts you have. Creating a chart or spreadsheet is probably the easiest way to sort all the vital information.

List the following:

Creditor’s name
Principal currently owed
Minimum payment
Interest rate
Contact phone number
Website address with login information

Next, add any credit lines you may have open but with zero balances to the above list. (I’ll explain why later.) Fill in all the above information, except principal and minimum payment, of course.

Take your list and start calling each of your current credit card companies. Ask what their current offers are for balance transfers. Mention that you'd be willing to move your balance to another bank's card if a better offer comes along.

Take notes on your chart or spreadsheet for each offer. Watch the fine print: ask if there are balance transfer fees, how long the lower rate period lasts, what happens to the transferred balance if you make a late payment, etc.

Be aware that a common gimmick now is to offer a very low rate for transferred balances with no fees, as long as you charge a certain amount each billing period, say $25, which is billed at a higher interest rate than your transferred balance. Since the credit card companies apply your payment to the lowest-rate balance first, you’ll accrue the higher interest rate on the monthly charges until your transferred balance is paid off.

For example, say you transfer $5000 at 1.9%. The rate goes up in 6 months unless you charge at least $25 a month by the close of the billing period. Purchases are charged at 11.9%. If you pay $200 a month on the card, it’ll take you 25 months to pay off the transferred balance (ignoring finance charges). Meanwhile, for 25 months you’re charging $25, which grows to a balance of $625 plus interest of 11.9%.

This gimmick won’t hurt you if you can get a low interest rate for purchases (say, less than 9.9%) and you make sure you only charge the amount needed to maintain the low transfer rate. When the transferred balance is paid off, have the cash on hand to pay off the purchases, too.

Okay, back to debt management.

After you’re done calling all your credit card companies, choose the one with the best offer. Transfer as many of your balances as you can to that card. If there’s not enough room, ask for a credit limit increase, or transfer the rest to the card with the second-best offer.

Note: if you ask the best-offer card to increase your credit limit, it’ll show on your credit report, so unless your credit is sterling, be careful.

Figure out when any introductory rates expire and make a note on your calendar. If you won’t have your balances paid off by then, back up about six weeks and make a note to search out a new lower rate.

When you’re done, you should have all your credit card balances on just one or two cards. Maybe three.

At this point, most experts would recommend you close your other accounts. I disagree, unless it would improve your credit, and you need to make a large purchase soon, such as a mortgage. Put those cards in the freezer instead.

Why not close them? Because if you need to transfer balances again, those credit card companies will be hungry to get your business back. If you’ve faithfully paid your transferred balances on time, your credit will be in good shape (or at least better than it was) and they’ll fall all over themselves to get you to transfer balances back to them.

Another note here: if you can’t control your credit card spending, then by all means close the accounts. No debt management strategy is worthwhile if it means you’ll only put yourself deeper in debt!

Some folks often ask me if it makes sense to put their credit card debt on a home equity loan or line of credit, as they often have low introductory interest rates. I hesitate to recommend this. Home equity is secured by your primary residence. If you can’t pay, the banks foreclose. Why take the chance if there’s another way?

Get your debt to the lowest rate possible, keep track of when low rates expire, and pay as much as you can as fast as you can.

Don't pay others to do it for you. Do your own debt consolidation, and then make a plan to pay it off as quickly as possible.

I know you can do it!

Copyright 2006 Leo J Quinn Jr Enterprises, LLC

A financial educator for over ten years, Leo Quinn Jr. specializes in helping people get out of debt and stay that way. His “How to Own Your Paycheck Again” program has helped thousands of families improve their finances and escape the debt trap. You can visit Leo's website at How to Own Your Paycheck Again!

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Debt - Warning Signs of Debt Out of Control

2006-07-03T22:40:00.000-04:00

Warning Signs Debt is Out of Control - Forbes article
today Consumers Face Challenges in Handling Debt By Eileen Alt Powell of the AP talks about the impact of higher interest rates and high gas prices at two catalysts to people seeking credit counseling.

There seems to be a tendency for people to borrow as much as they can whether its a home equity loan, maxing out credit cards while thinking life will either stay the same or get better when in fact ~ interest rates go up, gas and food prices go up while paychecks don't grow fast enough.

Eileen Alt Powell quotes Consolidated Credit's Dvorkin on the leading indicators that a consumer is headed toward financial trouble.

He said juggling payments is one of the "leading indicators" that a consumer is in trouble. He added that other telltale signs are:

_ You only make minimum payments month after month.

_ You're taking cash advances on one credit card to make the minimum payments on others.

_ You delay - or are late, with important payments, such as the monthly mortgage.

_ You put off necessary activities, such as doctors' appointments.

What does that mean to us? It means that even if you are just starting to see yourself getting in over your head with payments then it's time to get back on track. Don't wait until you are in the throws of credit chaos - if you are having trouble stop and take stock of where your money is going and exactly how much credit card debt you have.

One way to get a handle on your debt is a software program called "Debt Cruncher" offered with Leo Quinn's Take Back Your Paycheck Again! an ebook with a unique but easy to use debt reduction plan.

Either way, get a handle on living without incurring NEW debt - it doesn't go away without leaving a mark on your future. Pay it off and take a deep breath - It is possible to live debt free.

Tammy

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Eliminate Debt - Dealing with Debt Collectors

2006-07-01T07:10:00.000-04:00

Don't Make These Seven Mistakes When Dealing With Debt Collectors
By Scott Weldon Clark

The number of complaints about debt collectors is on the rise. From 13,950 reported to the Federal Trade Commission in 2000, the number has ballooned to over 66,000 in 2005. And these are just the ones reported--the greater number of complaints go unreported. But this isn’t the worst; a significant number of complaints are coming from consumers who do not even owe the debt.

So what’s going on here? It is apparent that debt collection agencies are becoming increasingly competitive and that they are getting more aggressive in an effort to improve their bottom line. And to do this, they have to put more pressure on the one who owes the debt—the consumer, you.

What can you do if you are caught in the crosshairs of a debt collector? Enforce your rights. As a consumer, you have rights under the Fair Debt Collection Practices Act (FDCPA.) These rights mean that you cannot be lied to, abused, or harassed when a debt collector is trying to collect from you. And these rights have teeth. When a debt collector violates the provisions of the FDCPA. when he or she violates the rights you have under the FDCPA, you can sue for damages and for attorney’s fees.

But when dealing with debt collectors under the FDCPA, don’t make the following four mistakes:

1. Not knowing your rights. You need to remember that you have rights even when you haven’t paid what you owe for whatever reason. We don’t have debtor’s prisons anymore and debt collectors can’t buy a license anywhere to have any kind of open season on anyone who is delinquent in paying debts. This is true because of those rights. So make sure you understand just what those rights are. You can’t claim them if you don’t know them.

2. Not keeping records. To be able to enforce your rights, you’ll need to keep some records. This will mean a phone log (the number of calls and when can both be violations of the FDCPA); notes from the calls (what they say to you may not be abusive, harassing or a misrepresentation); and all the letters they send to you (they must have the proper notices and may not confuse you about what you need to do) as well as the letters you send to them. All of these must be kept for you to better make your case.

3. Not responding on time. You have certain rights that must be exercised within a certain period of time or they are lost. (The right to verification information is one) So be vigilant about any time limits. Respond when you need to and file suit on time--if it comes to that.

4. Avoiding the calls. Don’t avoid the phone calls either. It is only by dealing with the debt collector that any of your rights under the law may be exercised. And exercising those rights--for example, the all-important right of verification-- might just make the problem go away. (If the collector cannot verify the debt, he or she cannot continue to collect it.) So it is better to take the call and talk.

In dealing with debt collectors, it also pays to be smart. So, for example, don’t also make the following three mistakes:

5. Not negotiating. Debt collection agencies most often buy the debt. And they buy it for less than you owe on it. Their profitability comes from getting you to pay more-- and possibly a lot more-- than they paid for it. So make sure you try to negotiate a lower figure. They just might accept it.

6. Ignoring the debt. Ignoring the debt is only going to cause more problems. If the debt collector understands that his or her efforts are not going to get you to pay, that may start the clock on any lawsuit they can bring on the debt. And that only gives the debt collector the advantage. Keep the advantage with you.

7. Paying by personal check. Paying by personal check gives the debt collector your account number and the name of your bank. That can create some problems with unscrupulous debt collectors who might be tempted to do something shady like setting up an electronic payment. (It’s been done.) And that isn’t good. But it also gives them information they can use if they want to enforce the debt through legal means. Why make it any easier?

If you are faced with any attempt to collect a debt, make sure you get all the information you can. If you do, you’ll be more able to enforce your rights--and they will be less able to intimidate you. Both of these come out on your side of the ledger sheet.

Scott W. Clark is an attorney author who has written the e-book Know Your Rights: When the Debt Collector Calls as well as the e-book A Debt Collection Primer. Both are available from Martin Clark Publishing. This article is for information purposes only and is not intended as legal advice.

=====================

Remember: My top recommendation for eliminating personal debt is to get your own copy of Leo Quinn's Take Back Your Paycheck Again! Leo J. Quinn, Jr. owner of LeoQuinn.com is a financial educator from the Albany, NY area. For over eight years he has been helping thousands of people get control of their finances and get out of debt in a fraction of the normal time. Discover How to Take Back Your Paycheck Again - Leo Quinn's eBook and Debt Cruncher Software Program Tammy

One Way to Bring in Extra Money - Use that Extra to Bring Down Your Debt

2006-06-29T13:14:00.000-04:00

One Way to Bring in Extra Money - Use that Extra to Bring Down Your Debt

Making Money Selling Other People’s Products

Copyright 2006 by Jason James
Auction Resource Network

A lot of people are now getting into online businesses and online marketing either to supplement their “real world” income or for it to become their primary source of income. Why? Because online marketing just provides them a lot of benefits!

First, you can reach just about anybody in the world who has Internet access if you market your products online. That means a wider market for you, which can translate to larger profits. Second, setting up an online business requires only a fraction of the cost required to set up an actual business establishment, which means a lot of savings for the business owner.

Another aspect that has attracted a lot of people towards online marketing is the fact that one doesn’t have to have his own products to get started. In online marketing, one can start making a lot of money just by selling, or even by just trying to sell, other people’s products. And getting started with this kind of marketing strategy is actually quite easy. All that one needs to do is to set up an agreement with an online retailer or merchant, and after everything is settled, one can immediately start making money by selling the merchant’s or the retailer’s products.

Incidentally, the most popular and the fastest growing method of selling other people’s products online is affiliate marketing. Affiliate marketing, in its simplest definition, is a relationship between an online merchant or retailer, who has products to sell, and his affiliates, who are willing to promote the merchant’s product on their website.

In a typical affiliate marketing set up, the merchant provides his affiliates with banners and text ads that links to his site. The affiliates will then get these ads posted on their website and they get paid whenever traffic or sales is directed to the merchant’s website. Affiliates are often paid on commission basis, although other online merchants would opt to pay a fixed fee for the affiliate’s compensation.

Starting to make money online with affiliate marketing is relatively quick and easy. All that one has to do is to sign up as an affiliate for an online company that offers affiliate programs. An alternative method, and usually an easier one, is to sign up as a member of an affiliate network - a network that hosts a variety of affiliate programs for different online merchants or retailers. Signing up is usually free, although other companies and networks may require you to pay a particular fee. Such fees, however, are made as payment for additional services that the company may render, like providing you with tools and assistance to jumpstart your online business.

When you sign up with an affiliate marketing program, you are usually required to fill out a form containing information about yourself. Some affiliate programs may also require you to present the URL of your website and describe its contents. This will allow the retailers to verify that you actually have a website with contents that are relevant to their products. Some affiliate programs, however, won’t require you to have a website. After filling out the form and all, you are then allowed to choose the affiliate programs you want to promote.

After signing up with an affiliate program and being an actual affiliate, you are now ready to start making a lot of money by selling other people’s product online. How do you make money? There are actually a number of ways for you to earn money as an affiliate, and most of these ways depends on the type of affiliate marketing program you’ve gotten into.

Many affiliate marketing programs compensate their affiliates in either of three ways: pay-per-click (PPC), pay-per-sale (PPS), or pay-per-lead (PPL). In pay-per-click affiliate marketing, the affiliate is paid whenever he directs traffic to the merchant’s site. PPS and PPL affiliate marketing programs work rather differently. In PPS, the affiliate only gets paid when his referral converts into an actual sale. In typical PPS affiliate programs, the affiliate would usually get 15% to 20% commission for each conversion. PPL affiliate programs work the same way, although affiliates are paid a fixed fee whenever his referral converts into a lead for the company.

Some affiliate marketing programs are two-tier programs, wherein the affiliate is also allowed to recommend other affiliates to the merchant. In such affiliate programs, the affiliate would not only be paid for the traffic or sales that he would direct to the merchant’s site but also for the traffic or sales directed by the affiliates who signed up with the program through his recommendation.

One of the highest rated affiliate programs on the Internet today. eBay Expert Jason James teaches people how he makes over $11,000 per month on eBay. Offering $50 or more per sale, PayPal weekly payouts, live reporting, monthly cash prizes, and excellent conversion rates. Discover how you can generate income from home at Jason's Auction Resource Network.

Click here to begin making big money with this program.

Elminate Debt - How to Cut Credit Card Debt

2006-06-16T16:44:00.000-04:00

How to Cut Credit Card Debt

by Richard Townsend

Most Americans have too much credit card debt. Duh, we've all heard that before, right? Only now its gotten a bit personal... right again? You personally have too much credit card debt and its about to drive you crazy.

Well there IS hope so don't file those bankruptcy papers just yet. One major thing you have to keep in mind is your creditor is probably very willing to work with you. Its in their best interest to have you making some payment versus no payment. So here are a couple points to help you deal with your credit card debt.

The first thing you have to do is simply contact your creditor and let them know your situation. Ask for a lower interest rate or a repayment plan. You might not have thought of it because you're just naturally so polite but its a very good strategy to be courteous at all times when negotiating with your creditor. Polite, but firm. Come across as one who knows what you're asking for and expect to get it. If you're not sure what you're asking for in the first place you might consider a reputable credit counseling service. There's a lot of great, honest organizations out there whose mission is to help you work things out with your creditors.

Next you've GOT to stop using your cards. Cut them up, freeze them in a tub of water, whatever you need to do to get them out of your wallet or purse, do it! You simply can't keep adding to the problem by running the debt up any higher. This is actually one of the hardest parts of cutting your credit card debt. Its like you're addicted to spending money you don't have. So go cold turkey and drop the habit.

Start paying the ones with the highest interest rate first and work from there. How do you do that? Concentrate on those high interest rate cards by paying more than the minimum balance each month. The minimum is just designed to keep you on the hook longer anyway. The credit card companies are in this business to make a profit and want to have you paying them for years to come. Even a little extra each month makes a big difference in the long run.

Lastly, keep your chin up and have a good attitude. Millions of folks just like you have begun to cut their credit card debt by following the common sense steps outlined above. You can do it too. Good luck.

Richard Townsend
http://www.cut-credit-card-debt.com/

Eliminate Debt - Crushing Credit Card Debt

2006-06-16T16:28:00.000-04:00

Crushing Credit Card Debt
David Berky

How much do YOU owe on your credit cards?

The average American family is now over $7000 in debt just
on their credit cards. That debt generates an interest
charge of over $105 each month if your card charges the
average 18%. If you have missed a payment or made a late
payment (even by one day!), you may be paying up to 27%
interest or over $157 each month.

Most credit card companies require a modest payment towards
the card balance. Modest meaning from $10 to $20 a month.
To pay off a $7000 debt at $20 a month you will not pay off
this debt for 29 years.

And what about those interest charges? Paying off a $7000
credit card debt charging an interest rate of 18% and paying
$20 a month towards the debt, you will pay over $18,400,
more than TWICE the original debt, just in interest.

What if you have more than one card? What if your debt is
over $7000? What can you do? How can you get out of this
hole?

There are some techniques that can help you pay off your
debt and do not require expensive loans, invasive credit
checks, or expensive financial planners and accountants.
You can also save on interest charges by paying off your
debts in a certain order.

The most effective technique is sometimes called the
"snowball" method. The snowball method suggests that when
you pay off one debt you apply that payment amount to the
next debt. Thus the amount you pay on a debt grows like a
snowball rolling down a hill.

For example, you have three credit cards with debts of
$5000, $4000, and $3000 which are charging you 18%, 27%, and
12%, respectively, and you are paying $150, $125 and $100
each month. By paying these required monthly amounts you
will pay off your $3000 credit card first.

Now that the $3000 card is paid off you have an extra $100 a
month. Put that extra $100 toward paying off your next
credit card debt. Now you are paying $225 a month on the
$4000 card and the $150 on the $5000 card. With this
accelerated payment on the $4000 card you will pay off the
card earlier and save some money on interest charges.

Then apply the $225 payment to the $5000 card for a monthly
payment total of $375. Soon this card will be paid off and
you will have $375 extra each month to pay off other debts
or better yet, INVEST!

So, which debts should get paid off first?

Generally, you want to pay off the debts that are charging
you the highest interest rates first. In the above example
you could have added the $100 payment to the $5000 credit
card rather than the $4000 credit card. But the $4000
credit card is charging you 27% where the $5000 credit card
is charging 18%. By paying off the card charging the higher
interest rate first, you will save some money on interest
charges.

If this sounds too confusing, you can enlist your computer.
You can search the Internet for the keywords "debt reduction
calculator" or you can visit Simple Joe's Debt Eraser

Simple Joe's Debt Eraser helps you create a Rapid
Debt Reduction Plan that is customized to your debts and
your situation. Just enter your debts and the amount you
can afford to pay each month. The software will create a
plan telling you how much to pay towards each debt each
month until they are all paid off.

You CAN pay off your debts. The trick is to stop charging
purchases to your credit cards and develop a debt reduction
plan. Your plan should include "snowballing" your payments
and prioritizing the debts by high interest rate.

© Simple Joe, Inc.
David Berky is president of Simple Joe,
Inc. which sells the Simple Joe's Debt Eraser PC software.
Debt Eraser can help anyone get out of debt quickly and
inexpensively by creating a Rapid
Debt Reduction Plan. This article may be freely
distributed as long as the copyright, author's information
and an active link (where possible) are included.

Organized Money - Thinking Outside the (Shoe) Box

2006-06-07T12:02:00.000-04:00

Organizing Your Finances - Thinking Outside the (Shoe) Box
by Leo Quinn

If you’re like most people, your personal financial records are most probably kept in less than “Good Accounting Practices” standards. For example, stashing old ATM receipts and hanging on to a stub showing what you paid for a pack of mints two years ago (cash, of course), might be filed with your paycheck stubs, credit card statements – paid and unpaid alike – as well as a few tax forms, a stray paper clip and a penny. Anything from an old shoebox to a toolbox would do you for this method of personal financial tracking but you can do better than that.

Not to worry. Here’s how:

1) Plan for a few hours of “alone time” with your financial records. This is a dandy time to pack the kids off to the mall, put up a pot of excellent coffee and a little snack (preferably chocolate), as a treat when you’re done.

2) Supply yourself with ample space, such as a large dining room table. Make sure you have enough organizing supplies close at hand: sticky notes, file folders, a tub to hold them with hanging file folders, large envelopes, a check file, ring binder/s and a three-hole punch if you like, an open stacking file, and an organizer/sorter. A trash can by your side is a must.

3) Get everything from everyplace – shoe boxes, check files, file folders, etc.

4) While enjoying your cup of coffee, make a game plan. Decide what you’re going to put where: e.g., checks and statements go in a specific file for checks and statements, credit card statements can be unfolded and placed in a file folder, etc.

5) Start sorting on the table. Checks go here, ATM receipts go there, paycheck stubs go over there, paid bills go on the other side, etc. until all the “stuff” is divided into neatly organized piles. Use sticky notes to mark what-goes-where on the table to avoid confusion.

6) Put all the “paid” items away first. Be ruthless – it’s perfectly okay to toss the receipt for those mints from two years ago.

7) Put the rest of the inactive items in the envelopes, file folders, check files or other storage devices as are interesting, functional, and readily available from your local office supply store.

8) Have another cup of coffee and tackle the active, or open, items. Decide what you’re going to pay and when. If you have an open stacking file, you will find one with four compartments (one for each week of the month), very handy for this purpose.

9) Balance your checkbook. Now.

10) Enjoy your chocolate after putting everything away where it belongs and, oh, by the way, check the calendar for when you’ll be doing this again next month.

Of course, next month this will all be done much faster.

I highly recommend using technology to make this much easier and faster. Programs like Quicken and Microsoft Money will help. Really any spreadsheet program will do.

Have a category for each life area you spend money. Once a week or month take your receipts, checkbook records and scribbled notes and record where you spent ALL your money....every penny. One of my students was shocked to find out he was spending $75 per month on orange juice! Legend has it that the Rockefeller boys did this and they turned out alright.

This time next year you’ll wish you started today.

Leo J. Quinn, Jr. owner of LeoQuinn.com is a financial educator from the Albany, NY area. For over eight years he has been helping thousands of people get control of their finances and get out of debt in a fraction of the normal time. Discover How to Take Back Your Paycheck Again - Leo Quinn's eBook and Debt Cruncher Software Program

Debt Management - Bad Credit Signs!

2006-05-24T22:33:00.000-04:00

Bad Credit Is Coming! - Signs That You Are Approaching Bad Credit
By Joseph Kenny

Many people in the United States today have bad credit, and the numbers have continued to rise. It isn't just those who are lazy who end up with bad credit. Many hard working people who are well meaning end up in situations where their credit is ruined. The best way to avoid this is to look at the different warning signs that can indicate that you're headed towards a situation where your credit can be destroyed.

If you don't have medical insurance, this is one sign that you're headed towards financial trouble. Statistics show that a large percentage of people who end up with bad credit are those who have outstanding medical bills. As the cost of healthcare continues to increase, getting sick or hurt could put you in debt that is difficult to get out of. If you don't have health insurance, it may be time for you to get it. If you are maxing out your credit cards, this is another sign you are headed towards bad credit.

Credit cards are a key factor that causes many people to end up with bad credit. Their high interest rates combined with late payment fees and universal default can make them a nightmare for people who don't use them properly. It is best to keep your credit card balance as low as possible. Only use your credit card when you absolutely need it. Always pay your bill on time and avoid maxing out your card at all costs. Many people also make the mistake of using the equity in their homes too much to pay for expenses.

While using the equity in your home can be a good idea for those who want to remodel their kitchen or bathroom, they should be used cautiously. Before you use the equity in your home, make sure you will be able to make the monthly payments with ease. You want to avoid situations where you could default on your payments. Living paycheck to paycheck or not having adequate savings is another sign that you could end up with bad credit. It has been shown that about 40% of American families have less than $1000 saved up.

This is alarming for a number of reasons. First, if you get into an emergency, you will have little money to protect you. This will leave you open to using a credit card or payday loan, something you want to avoid. This will get you into a cycle of debt that is difficult to escape from. The chances that you will get behind on your payments and ruin your credit are dramatically increased.

Because of this, it is important to start saving money if you're living paycheck to paycheck. Get rid of bills that you don't need. Saving money is an important part of building wealth, and if you're living paycheck to paycheck, you're not getting ahead financially, even if you make a large income. If you are only paying the minimum balance on your credit cards, it will be difficult to pay them off. It may take as long as 30 years to pay off your cards, and you could end up with bad credit if you stop making your payments.

Another thing that can lead to bad credit is co-signing on a loan for someone else. Even if you have good credit, the person that you're co-signing with may not. If they decide to stop making payments on the loan, you will be held responsible because you signed for the loan as well. It is best to avoid co-signing for a loan at all times. If your home or car has been foreclosed or repossessed, this is a factor that can also cause your credit to be ruined.

Joseph Kenny writes for the UK Loan Store, visit them here, Personal Loans Store and more information on bad credit loans available on site.Visit Today

7 Ways to Save Money This Month - Debt Free Living

2006-03-26T17:11:00.000-05:00

7 Ways to Save Money This Month!
by Tammy Ames (c) 2006

Shop out of season - As spring clothes and summer wear are being brought out to display at your local department stores, check out the clearance rack. Especially winter coats, ski pants, wool socks and boots in the next size up can be picked up cheaply. Shopping in the spring for winter clothes and outerwear for other family members will give you a head start on Christmas shopping.

Make your own lunch - By eating at home or bringing your own lunch, you will save about $25 a week. That is over $100 a month that you can invest or pay down your credit card debt faster. Imagine putting an extra hundred dollars a month on your mortgage principal or clear up your list of smaller debts that nag at you.

Empty your pocket change into a cookie jar at the end of each day. See how much you save in one month, it will motivate you to keep your hands OUT of the cookie jar! Set yourself an attainable prize for your cookie jar money at the end of one year like a day trip or even a fun weekend away from the kids that you paid for with your pocket change!

Keep track of every time you spend money for one month. Just being AWARE of the fact you are going to write it down will curb some of your impulse spending. At the end of the month make a list of where you are NOT going to spend your money impulsively. Making yourself and other family members ACCOUNTABLE will simply save you some money. You can tackle the HOW of saving even more money when you find the leaky parts of your wallet or checkbook.

Double check your telephone service - Whether it's your landline or cell phone, take the find out if you have the most cost effective service programs for how you use your telephone. Make sure you have the lowest rate and discounts available for your current telephone usage. Telephone services are often very competitive and want your business. Make them prove you have the best deal going for your telephone usage.

Save on gas - You can check prices of gas in your local area with websites like gasbuddy.com to make sure you are getting the lowest price when you get gas. If it’s a great price (if there is such a thing!) then fill it and paying cash instead of with a credit card. Drive gently, keep the load on your car light, keep the car rack empty or remove it, combine errands, car pool and keep your car in good running condition. This is where a mechanic that will barter services would in handy!

Pick up a copy of Leo Quinn's How to Own Your Paycheck Again. Not only will you get his ebook that gives you step by step help to gain back control of your money. He will show you how to pay of your personal debt faster than you think possible. In fact, according to Leo Quinn - The more you owe, the faster you will become debt free.

Of course, your success is dependent on how committed you are to his program BUT once you use the Debt Cruncher software that comes with his "How to Own Your Paycheck Again" you will know exactly WHEN you can become debt free. For the cost of dinner and night at the movies for two, you can be on your way to saving money every month while paying off your debt FAST!

Learn more about Leo Quinn's How to Own Your Paycheck Again and be sure to let me know how much it helped YOU.

Tammy Ames - Owner of WAHM Connections and publisher of Work at Home Connections Ezine Online. If you want to earn money online selling on eBay then check out the Sell on eBay Blog Tammy offers for eBay entrepreneurs!

Save Money Tips for Everyone

2006-03-21T18:13:00.000-05:00

Discover Money Saving Techniques You Can Use Today
By Chris Huff

Here are the six easiest ways for saving money every day of your life. No, you won't be required to rob a bank or steal some gas. You just have to commit to these six simple ways. The trick with saving money is changing your buying habits. These six steps show you the new habits you must adopt to save money each day.

1. This might sound crazy, but DON'T CARRY CASH. If I gave you a five dollar bill, I guarantee you'll have it spent in a day. Why? You spend because you have the money with you. You might spend it on coffee or a snack or something not food related at all such as a magazine. However, if you don't have the cash, you'll stop those small-item impulse purchases.

2. DON'T BUY THAT TODAY! I agree everybody should have a super deluxe sparkly whatever. The question you need to ask yourself is DO -I- NEED THAT? This isn't a question that gets answered in the shopping aisle. It gets answered in the next day or two. Guess what, most people find the next day that don't need the item and are glad they didn't buy it. You've just saved money by not buying something you had convinced yourself you needed!

3. BORROW RATHER THAN BUY. This goes for opting for the public library over the movie rental store. Borrow a step ladder to clean your gutters if you only use it once a year. Everybody has extra stuff they aren't using it. Borrow from your friends and neighbors. Look how many items you've bought and only used once! Don't waste you money like that. Borrow it!

4. DON'T PLAY THE LOTTERY. You're thinking a dollar here and a dollar there isn't a big deal. Be honest, do you ever buy just one ticket? Buying three a week is $156 a year. Scratch-off cards can run as high as $10 to $20 a piece. The odds aren't in your favor for winning the lottery or the scratch-offs. Save that money for other things.

5. Don't hate me for suggesting this...

CHANGE YOUR HOBBY. Growing up, my main hobby was fishing. The cost of $15 per year for a license and money for occasional new fishing lures was easily under $75 dollars a year. Later in life, I started playing golf. I could blow $75 in one weekend playing golf. Calculate that out to 20 games a year and that's $1500. Look at your hobbies and see if you need to find something more inline with your income.

6. DON'T SPEND WHAT YOU SAVE! I can easily tell myself that because I saved $10 on a shirt, I can spend that money on something else. WRONG! Saving money means s-a-v-i-n-g m-o-n-e-y. If I save $10 on a shirt, I now have more money for paying off my credit card debt, more money for groceries, and more money for paying my utility bills.

Every item in this list will help you save money. The more you can cut your spending, the more money you can save for retirement, pay down on debt, and save for a vacation.

Chris Huff runs http://www.debt-reduction-solution.com providing information on debt reduction and how you can kill off deadly credit card debt. You can also find ways of saving money from buying groceries to entertainment. For more information, please visit the website.

Credit Cards - New Minimum Payments?

2006-03-17T20:03:00.000-05:00

Credit Cards and Debt: Will You Be Slammed By A New Minimum Payment?
By Douglas Hanna

The Federal Government has been pressuring credit card companies such as MBNA, CitiBank and Bank of America to double the minimum payment they will accept from cardholders each month.

This means that if your minimum monthly payment was calculated last year at the rate of 2% per month, it may soon become 4%. However, it's hard to tell when you will actually see this increase, as the various credit providers are upping their minimum payments at different times over the coming year. This means you won't know for sure about any increase until it shows up on your monthly statement.

What will this do in terms of you actual monthly payment? If you have a credit card where the minimum monthly payment last year was $200, it could easily go to $400 a month sometime this year. Worse yet, if you have balances owed on several different cards, you could get slammed for an extra $300 or even $500 or more per month!

What's the good news?

The good news is that doubling the amount you must pay each month reduces the time that will be required to pay off that credit card debt, and the amount of money it will take to pay it off.
For example, suppose you have a credit card with an interest rate of 12% and a monthly minimum payment of 2%. In this case, it will take you 368 months to pay off your credit card debt – or about 30 and one-half years!

Now, take this same credit card with the same interest rate, but double the minimum monthly payment to 4%, and what happens? You reduce the number of months required to pay off that $10,000 in credit card debt to 151 months or about 12.5 years.

Of course, you don't want to make just the minimum monthly payment every month, month after month if you can possibly avoid it. Here's an example of what I mean. Suppose you charge a $6,000 cruise and never make more than the monthly minimum payment of $400 (4%). If the card you put it on carries an interest rate of 12%, it will take 134 months to pay off that cruise – or long after all those golden cruise memories have faded.

So, if your credit card provider does double your monthly minimum payment this year, it may hurt a lot in the short run. But in the long run, it will save you money and help you.

Here's something that's great and is totally free. It's a new form of broadcast radio called HD Radio that enables AM and FM radio stations to broadcast their programs digitally. This is a tremendous technological leap from today's familiar analog broadcasts. These digital broadcasts provide listeners with radically improved audio quality, more radio channels through multicasting, and new data services.

To learn more about this amazing new technology, just go my Web site, http://www.hd-radio-home.com, to get all the buzz.

Douglas Hanna is a retired marketing executive and the author of numerous articles on HD radio, old time radio and family finances.

Personal debt growing, worry escalates!

2006-03-15T16:51:00.000-05:00

How long have you been worried about your debt? If you won't even begin paying for last year's holiday gifts until next year, you are not alone.

Statistically, personal debt is growing faster than our family incomes. The average American family carries a credit card balance of $5,000.

It's time to discover a financial teacher named LeoQuinn who has designed a debt relief program that could work for you and change your life. You can reach yourdreams and achieve your goals much faster when you are notburdened by debt.

Mr. Quinn will teach you:

--Why a savings account can COST you thousands ofdollars.

--Why paying off high interest debts first can be theslowest way out of debt.

--Why paying extra money on more than one of your debtscan actually keep you in debt longer.

--Why having many debts can actually help you get out ofdebt faster!

--Why your debts are often the very best investment youcan make and much SAFER than today's stock market!

--How to calculate EXACTLY when you'll be out of debtand FREE!

This program is new and different and I'm excited to tell you about it.

If you are able to pay the minimum amount on all of your bills now, this method will work foryou. Plus you won't have to pinch pennies, get a second job or cut back your spending in any way!

If you would like to discover life-changing money management tools including a home budget software called the Debt Cruncher that can tell you just how long it will take for you to become debt free. To learn more about Leo Quinn and receive a time-limited special offer right now. Click below to get all of the details => Debt Relief Program

Tammy

Out of Debt - It is more than simply paying off debts!

2006-02-25T13:39:00.000-05:00

Get Out of Debt - It's more than controlling your debt, it's really about how you much you value yourself. Boost your self esteem by taking back the power that money and debt has taken from you.

Out of Debt – Get out of debt to boost your self-esteem!
By Tammy Ames © 2006

Out of Debt – Is it possible in today’s society to live a life that is debt free? A cash only existence? It’s almost a foreign concept in 2006. Yes, there are programs to help you get out of debt but often people consider it a temporary fix rather than a way of life. Personal debt is a BURDEN.

Finding a way out of debt and staying debt free can only improve your life. Your self esteem is built on life successes. With each call from a debt collector, your self esteem takes a major nosedive. Honestly, to feel better about yourself and your circumstances – make it a priority to get out of debt.

There is an interesting phenomenon that happens when we find ourselves in debt. We can blame the economy, the government, our spouses and our job BUT, living a life within our means is always an option.

Often times, we have used credit cards and loans to give us the things in life that we believe will make us HAPPY but when we realize just much debt we owe, we become depressed. How can we enjoy the things we have if we have to worry about paying for them? Getting out of debt once and for all will boost our self confidence and make life more enjoyable.

Okay, it seems like a tall order to say – Get out of debt. Take control of your personal debt and start on the path to debt free living. Easy for me to say. Actually, no it’s not!

I do know that when my bills are paid and a debt is paid off, I DO feel better about myself. I feel in charge, empowered, efficient. My self esteem is boosted because I don’t have to spend time talking to bill collectors explaining WHY I didn’t send in my payment. I don’t have to recount all the reasons why my life is so hard that I can’t pay my bills. Instead of deflecting debt issues, face them squarely and take control.

Give your self esteem a shot in the arm – set up a plan to get out of debt then actually do it! It’s better to have a debt management plan that needs revising when things go wrong than it is to fly by the seat of your pants and default on loans, credit cards and mortgages. Depression and low self esteem loom down the road if you don’t do the best thing for YOU (not just your creditors) and learn how to get out of debt today!

Tammy Ames is the owner of WAHM Connections. Learn how to get out of debt faster than you think is possible, discover Leo Quinn’s How To Own Your Paycheck Again Learn how to make money from home - Subscribe to her dynamic weekly home business newsletter

Eliminating Personal Debt - Strategies to Eliminate Credit Card Debt

2006-02-18T12:37:00.000-05:00

Eliminate Credit Card Debt Legally - Strategies for Paying Off Credit Cards
By Carrie Reeder

Eliminating credit card debt legally will free up funds in your monthly budget. It will also improve your credit score so you can qualify for better rates on future purchases, such as a car or home. To start getting your credit cards under control, lower your interest rates. Then develop a payment strategy. If you need some outside discipline, turn to a debt management company.

Start Lowering Your Interest Rates

High interest rates make it nearly impossible to get a handle on large credit card balances. But by lowering your interest rates, you can increase your payment on those cards’ balances without increasing your overall payment.

The two most common ways to reduce your rates are to open a new credit card or consolidate with a loan. Transferring balances to an introductory low or no rate card is a no cost solution. Consolidating bills with a home equity or personal loan provide long term low rates with some closing costs involved.

Develop A Payment Plan

Once you get your interest rates under control, develop a payment plan to get out of debt. One course is to make extra payments on the lowest balance. Then when it is paid off, use those extra funds to pay off the next lowest balance.

The other option is to make extra payments on the highest interest account. Even though it may take longer to close out an account, you will see a long term savings in your interest costs.

Get Help Before It’s Too Late

Before you start thinking about bankruptcy, look at a debt management company to help you deal with your debt. For a small fee, they will pay your bills, lower your rates, and structure a debt elimination plan. While your credit score may temporarily decrease, debt management is better than a credit report with a bankruptcy or foreclosure.

Evaluate all of your options before settling on a credit card payment plan. The greatest savings are often found with the do-it-yourself approach of debt consolidation and budgeting. However, debt management companies provide a valuable service to those who need more structure to get out of debt.

View our recommended companies for Eliminate Credit Card Debt at http://www.abcloanguide.com/eliminatecreditcarddebt.shtml or view all of our Recommended Debt Consolidation Companies Online at http://www.abcloanguide.com/debtconsolidation.shtml
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My personal comments ~ Yes, there are positives for transferring your credit card debt to a lower interest credit card even debt consolidation with a home equity loan or personal loan BUT remember CREDIT and DEBT is what got you where you are now. Set up your plan then be diligent in doing what you have designed. Follow through with your debt elimination plan. My top pick: Take Back Your Paycheck Again!

Tammy

First Mortage Primer

2006-01-28T09:07:00.000-05:00

First Mortgage

Stepping Onto The Mortgage Ladder For The First Time.

Securing a mortgage as a first time buyer can be a daunting experience. You want to spread your wings but your worried at making the wrong choices of mortgage lender or mortgage deal.
In spite of numerous rules and legislation it is still preferable to have a very least a basic understanding ofthe mortgage markets and how the mortgage market operates.

There are numerous different mortgages, deals and programs for the prospective first time mortgage seeker. Its important to look into the details of these to establish if they are suitable and if so, if they are perfect for your requirements. Remember if a deal is packed with incentives and fluff it probably means at some point you will bepaying for it in the future.

There are whole ranges of first time mortgage plans dependant on your current situation and what you expect to happen in the future. This is not like buying a new outfitonce you have made a decision you will usually find it willbe difficult to change your mind. Probably one of the most popular starter mortgages is a fixed rate mortgage. You can usually get these for periods of 30, 20, 15 or 10 years depending on circumstances and the lender.

This means that the interest rate and the monthly paymentwill remain the same and will not change throughout the entire period of the loan. Usually the rate will be at apremium on the current prevailing rate which will fluctuate with the movements in the stock and money markets (Wall Street NYSE).

These type of deals are ideal for first timers if you plan on living in your property for more than 10 years and if you like stability rather than change in your monthly payments and budget.
Its sort of like knowing what your rental payments will be for several years, many new owners find this comforting especially when first putting a foot on the property ladder. But if you plan on staying put in your home only for a shorter time, maybe you intend to upgrade latter on a short term first time buyer mortgage might be the better choice for you?

If you don't want your mortgage to be the same for the next10-30 years or feel that the current fixed rates offered is over estimated and does not really effect the true estimate of interest rates in the future, you might opt for aadjustable or variable first loan.

The interest rate and the cost of most first time buyer mortgages still usually remain the same for a specific number of years, then after this period the payments and interest rate has chance of changing, usually annually, in line with the market.

Homeowners who have owned homes in the past can remember when we had much higher interest rate than we are experiencing today.

These variable rate mortgages are ideal if you need initial stability, but expect to be able to cope with changes later on. It can also be more flexible if you expect to upgrade or move once circumstances change.

There are different regional & state programs offered by a range of mortgage lenders that offer additional benefits to first time buyers. This type of first time buyer mortgage might offer reduced interest or points if it is your first home or if you havent owned in the last three years.

There are also preferential deals for first time buyers that will help you secure the credit you need to get into a home. There are even Federal programs, such as the FHA (Federal Housing Administration) loan programs as well as more localized programs both State and those funded by private organizations.

If you are retired military (veteran) and intend to buy a first home you're well catered for with special veteran loan schemes. The Division of Veterans Affairs has set up a scheme for you that will guarantee some of the most popular first time buyer mortgages (such as the 15 or 30 year fixed rate loans).

There are a many mortgage companies that want to help you find a mortgage. But never forget, this is a considerable investment on your part and change your future plans. It will be in your best interest to have some understandingof everything presented to you when looking for the first time deal and you must check out all the possibilities before choosing a deal.

Ask family members and experienced friends and get their opinions about a specific loan or use their knowledge and experience or ask them to refer you to a trusted broker. Just because you are doing this for the first time, it doesn't mean you have to be completely at their mercy does it?

Show them you grasp the basics and tell mortgage lenders and mortgage brokers that you have some idea what you're really looking for; they will treat you with more respectand this will help you get a better deal and so you can take that plunge into homeownership with no fears.

Jim Muscali is the occupier of FBBH Mortgage Incwhich is the premier resource for mortgage information. For questions or comments about this article go to: http://www.fbbhmortgage.com

2005-12-02T14:48:00.000-05:00

Create your own Anti-Emergency Fund © By: Cindy Morus

Do unexpected car repairs, quarterly insurance payments or those darned property taxes find you hard pressed to squeeze one more dollar out of an already stretched monthly budget? Or do you usually end up reaching for the plastic in your wallet to make up the difference? Those inevitable expenses can put less stress on your bank balance -- and your mind -- if you learn to expect them and save in advance.

Too often, irregular occurring expenses get left out of our financial equation. Our income stretches to cover the regular monthly expenses and the remainder trickles away toward little things like the morning espresso or lunches out or a dozen other daily splurges. We choose not to think about the brakes that are getting spongy or the plumbing that's beginning to make strange noises. And we end up riding a financial roller coaster, never knowing when the next crisis will throw us for a loop.

Planning and saving for those events can help prevent an ordinary life from turning into a crisis and can also cut down dependence on credit cards. Not having savings is a major reason people get into debt -- event when they don't have problems controlling their spending.

An Anti-Emergency Fund © is the way to anticipate and save for those irregular events that are anything but unexpected. The Anti-Emergency Fund © is the foundation of the three-part savings plan we'll be discussing in coming issues of Financial Fitness. With a little advanced planning, a broken water heater, a high winter heating bill or the family vacation don't have to result in financial emergencies. An Anti- Emergency account helps in saving for those variable expenses, both expected and unexpected, that inevitably occur.

Some people call this their "emergency fund," but it's really a savings fund that helps you prevent financial disasters. No, you can't predict when your car is going to break down, but you can predict that it will occasionally need maintenance and repairs and set aside a little money in advance for those events.

Here are some steps to help you get started on your Anti-Emergency Fund ©:

Identify your irregular expenses. Take an inventory of those variable expenses that occur throughout the year. Looking back at checking account registers and credit card statements can help you do this. Some examples of these include property taxes, insurance premiums, vacations, car tune-ups, holidays and birthdays. List as many of your non-monthly expenses as you can remember.

Write the anticipated amounts on the calendar. In many cases, you will know when the expenses are due to occur. In others, you won't. But you know that sooner or later a car will have problems or an appliance will break down. Try to anticipate these expenses and list them somewhat earlier than you actually expect them to come up. Be sure to update your calendar as you discover more expenses.

Include money in your monthly spending plan for non-monthly expenses. If your car insurance, for example, is due in May, set aside a small portion each month starting in February. That way, when May rolls around you can transfer the expense to your spending plan and have money available to pay it. Setting aside even a few dollars each month for foreseeable expenses can make it easier to manage your money throughout the year.

You may think you don't have any "extra" money during the month to set aside, but repairing your car or paying your insurance are not optional expenses. By setting aside small amounts ahead of time, you're avoiding larger money woes ahead. So you may need to find ways to reduce your regular monthly spending. By tracking your expenses, you may discover areas where you can trim your monthly spending with only small sacrifices. Costs of twice-weekly trips to the drive through or a professional manicure can add up quickly over a month. The important thing is to start today. It may be discouraging at first if you find that you don't have enough money to fully fund your Anti- Emergency Fund ©, but you'll begin to succeed the minute you start the process. Small amounts of savings add up quickly and start compounding immediately!

One of the mistakes people make when trying to get their finances under control is not having a savings account. They may reason that it's better to put money toward reducing credit card debt at 18 percent interest than to toss it into a low-interest regular savings account. The problem is that if you don't have money set aside for those unavoidable bills, you inevitably end up adding to your credit card balance to cover the difference.

Stabilizing your debt means agreeing not to incur new charges and to begin paying down what you owe. A savings account is a key element in making that happen -- and in improving your financial fitness!

Cindy S. Morus (cmorus@phelps-creek.com) Certified Financial Recovery Counselor Phelps Creek Financial Coaching 541-387-2995 (business and fax) Visit http://www.phelps-creek.com/ to learn how you can improve your Financial Fitness! Sign up for your free copy of "Financial Fitness" newsletter at http://www.phelps-creek.com/.

Start 2006 FRESH!

2005-11-28T17:25:00.000-05:00

Eliminate Debt ~ The new year 2006 is fast approaching. With me, every new year is a fresh start to reach goals I've fallen behind on. I'm encouraging you to start this new year with your money on track! Have a plan, set your financial goals, get rid of that extra personal debt with Leo Quinn's Take Your Paycheck Back Again! I am an active advocate for Leo's ebook and debt cruncher software because I know it Works! Get geared up for a successful new year today!

Eliminate Your Debt - Faster than You Think!

Tammy
WAHM Connections

WAHM Money - WAHM Business

2005-11-26T23:13:00.000-05:00

WAHM - are you starting your own home business to earn extra money? Are you a work at home mom bringing in extra to help get the bills down? Make sure you are using your money wisely with the right tools and business solutions. Second to none, The Best home business solution that can bring in the money faster building a website focused on your passion =>
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Tammy

Tips to Eliminate Debt

2005-11-18T23:28:00.000-05:00

Tips to Eliminate Debt
by Lynnette Khalfani

If you have problems fighting the urge to splurge, you're not alone. According to a recent Gallup poll, the average American owes $2,900 in credit card debt. Last year, 1.6 million US households filed for bankruptcy. Now more than ever, people are asking "Where'd the money go?"Financial expert Lynnette Khalfani offers the following tips to help get your spending under control:

Don't spend what you don't have. The average U.S. household spends $1.22 for every $1.00 it earns. That's a recipe for financial disaster.

Build up a cash cushion. Ideally, you should have three months' expenses set aside for emergencies — like job loss, disability or divorce. For example, if your bills are $3,000 a month, you should have a $9,000 cash cushion. Start saving it now and consider that money untouchable.

Use cash more often.Studies show people spend more, or overspend, when they whip out plastic versus paying for items with cold hard cash.

Get a financial planner. Hiring financial help isn't just for the rich, and it doesn't have to be that expensive. Go to the Financial Planning Association (FPA) for a certified financial planner in your neighborhood. The FPA can be reached toll-free at (800) 647-6340 or on the Web at http://www.fpanet.org.

Put everything in writing.Create a written list or a spreadsheet itemizing each creditor you owe. For some people, this step will be a big eye-opener. You may find out that you have way more debt than you thought. For others, putting all your obligations in black and white will be a relief ... you'll discover things aren't as bad as you'd imagined. Either way, having everything in writing gives you a realistic look at where you stand. Bonus tip: To make sure you haven't forgotten any creditors, order your credit reports from http://www.myfico.com.

You'll be able to get your credit score and credit reports instantly online from all three credit bureaus — Equifax, Experian and Trans Union.

Call up creditors and negotiate.Many consumers don't realize that they can call up their creditors and ask for lower interest rates, or request that late charges or annual fees be waived. Often, credit card companies will lower your rate on the spot, simply because they don't want to lose your business. It's a competitive market — credit card companies send out nearly five billion offers to consumers each year — and most credit card issuers know that customers will switch cards if their interest rate is too high. So using your list of bills you created in the previous step, call up each creditor and start negotiating.

Cut spending and apply savings to debt.Look for ways to slash your spending. For example, if you own a car, you can refinance your auto loan and save big bucks. Go to http://www.capitaloneauto.com, the nation's largest online lender, to save money on your monthly auto payments.
Also check out http://www.lowermybills.com.

It's a great resource for people who want to save money on 18 categories of bills — everything from life insurance to Internet service and telephone bills.

Pay at least three times the minimum due.Credit card companies typically ask that you pay just 2 percent of the outstanding balance. But if you only make minimum payments, you'll never get out of debt. For example, if you carry a balance of $13,000 on your credit cards and pay 15 percent annual interest, making just the minimum payments will take you more than 25 years to pay off that debt — and that's assuming you never charge another dime!

The solution: Always pay more than the minimum due. If you can swing it, pay at least three times the minimum required payment. Remember: "minimum" payments now really mean "maximum" payments in the long run!

Lynnette Khalfani is a personal finance expert, money coach, and the author of Investing Success: How To Conquer 30 Costly Mistakes & Multiply Your Wealth! and her latest book, Zero Debt: The Ultimate Guide to Financial Freedom. She can be reached via her Web site http://www.themoneycoach.net

8 Simple Money Saving Tips and Tactics

2005-11-09T14:25:00.000-05:00

8 Simple Money Saving Tips and Tactics
By Brook Noel

Have a plan (and then follow it) at the grocery store. It’s ob-vious to have a list. In fact, I’m great at list-making. On my last dash to the store, my list contained the following items: Wheat Chex, toothpaste, gallon of milk, cheddar cheese, pretzels and Gatorade. The bill should have easily totaled less than $25.00. By the time I neared the check-out, my bill totaled close to $50.00. It seems a few extra items had crept into my cart. Make sure you have a plan and then follow it when you do your shopping. If you con-tinually overspend (like I have the tendency to do) leave the house with what you plan to spend plus a $5.00 lee-way.

Put kids to work clipping coupons. Single parents rarely have the time to clip coupons for savings. Give your children a list of products that you use regularly. Sit them down each Sunday with the paper and let them partake in a coupon hunt. For each coupon they find (and you use), they get to keep half of the coupon’s value. For example: if they find a $1.00 off coupon on Cheerios, they receive 50 cents when you use it and your grocery bill bottom line receives the other 50 cents.

Watch where you walk. Less expensive items are typically placed around the outside of the market, it’s those mid-dle aisles that hold the items that quickly add to your bill. When you do need to dash down one of those aisles, remember to look high and look low. Less expensive items are usually placed near the top or bottom of the shelves. The shelves that are eye-level are reserved for the more expensive items.

Buy in bulk when you can. Buying items, that don’t spoil, in bulk can save money and save trips to the store. For sta-ples and nonperishable goods, stock up at good sale prices or join a warehouse club. If warehouse quantities are too much for your own family, combine your list with a few other single parents and then split the food to maximize your savings.

Let children design greeting cards and wrapping paper using items found around the house. This makes a great rainy day project while providing savings for the family.

Shop year round. Instead of waiting for Christmas woes and stressing at a time that should be joyous for families, learn to shop and take advantage of sales year around. Have a small amount taken from each paycheck and put into a Christmas fund. Carry a Christmas list in your daily planner.

If you haven’t tried a thrift shop, now is the time. While the idea of thrift and resale shops once brought to mind pic-tures of dingy rooms with stained clothes – not so any-more! Thrift shop business is booming. If you haven’t tried a second-hand store, take a peek you could be pleasantly surprised!

Keep a spending diary. If you find that you are still scrimp-ing day-to-day, keep a detailed spending journal. It is of-ten amazing how little purchases add up to big expenses! Seeing expenses in black and white can be eye opening. Buying a quick cup of coffee at a drive-through each morning can easily cost you $20-$30 a month. Most peo-ple spend at least $5.00 each weekday on food related items at work. (Lunch, pop, coffee, snacks, etc.) Bringing lunches, treats and drinks from home could save your family $100 per month – or $1200 per year! Little ex-penses add up quickly.

When you find the areas in your life where the money is draining out, plug up the holes! Now that you are better equipped to handle your current finances, let’s take a look ahead to finances of the future.

The Change Your Life Challenge
http://www.changeyourlifechallenge.com
Take control of your home, finances, relationships, clutter, time-managmenet and more with this 70 Day Program. Sign up for the free Challenge Weekly Newsletter and the motivational daily Good Morning.

==========================

Leo Quinn's "How To Own Your Paycheck Again" teaches how to quickly and efficiently eliminate your personal debts. He just updated this powerful ebook so check it out => Here <=

Tammy
WAHM Connections

Eliminating Debt - Ultimate Debt Elimination Plan

2005-11-01T21:55:00.000-05:00

Eliminate Debt Tips!

Create Your Own Ultimate Debt Elimination Plan
by David Berky

The method is simple. 1) Set a monthly amount. 2) Pay all minimum amounts. 3) Pay extra money toward the debt with the highest interest rate.

This method will ensure that you pay the least amount of interest and repay your debts as soon as possible.

The trick to paying the least amount of interest possible is to pay extra money toward the debt with the highest interest rate. Obviously you want that debt paid off as soon as you can. Each month it costs you the most.

The trick to paying off your debts in the least amount of time is to set a fixed total amount to pay each month. The trap many people fall into is that they only pay the minimum payments. These minimum payments are designed to keep you paying that high interest rate for as long as possible.

By paying a fixed total amount each month, as one debt is paid off, you will have more money to pay towards another debt. This is often called the "snow-ball" effect.

But first things first.

First, determine you ability to pay. If your total payments are much more than you can afford, you are in trouble. You may need to contact a non-profit credit counseling agency. You can find them in your local phone book or online.

But be careful of companies that want an up front fee. Check with your local Better Business Bureau for recommendations.

Next you need to make a commitment to stop getting further into debt. Cut up your extra credit cards or put them where you cannot easily get them. If you are living a lifestyle that depends on credit, you will soon dig a hole you cannot easily climb out of.

Stop spending more than you make each month and don't count on future bonuses, inheritances, refunds or other non-dependable income to bail you out. If you make $2000 a month you can only spend $2000 a month. Look for ways to cut back and purchases you can postpone or do without.

Now, let's look at each step of your ultimate debt reduction plan more closely.

First, determine how much you can afford to pay each month toward your debts. At the minimum it should be the total of all your minimum payments for the current month.

You may need to examine your spending for the last several months. Find things you can eliminate or do without for a while. Postpone purchases, cancel subscriptions. Anything to free up more money to pay off your debts.

You may even want to postpone investing for awhile. Are your investments beating that 18% you are paying on your credit card? If not, a better investment would be to repay your debts.

Once you have your monthly debt repayment amount set, you need to write down each monthly debt you are paying. Record the creditor's name, the current balance, and the interest rate. Then take a separate sheet of paper and reorder the debts so that the debt with the highest interest rate is at the top.

Now as each monthly bill comes in pay the minimum payment. Subtract the minimum payment amount from your set monthly total. After all the bills are paid for the month, take any extra money left over and make another payment on the debt at the top of your list.

You can make an additional payment this month or save the money to add to next month's bill. But don't spend it!

As each debt is repaid, cross it off your list, but keep paying the total monthly amount you set at the beginning. This will accelerate your debt repayment and save you hundreds or even thousands in interest charges.

The two keys to your ultimate debt elimination plan are to 1) stop getting further into debt and 2) set your monthly debt repayment amount. The rest is easy. You will be debt free before you know it!

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© Simple Joe, Inc.
David Berky is president of Simple Joe, Inc. which sells the Simple Joe's Debt Eraser PC software. Debt Eraser can help anyone get out of debt quickly and inexpensively by creating a Rapid Debt Reduction Plan.

Family Money Management

2005-10-29T11:54:00.000-04:00

Family Money Management: The Importance of Agreement
By Douglas Hanna

Are you having problems with debt? Are you afraid to answer the phone because it may be an angry creditor calling? Do you have problems getting from one paycheck to the next? The simple answer is that you need to budget. But for that budget to work, both you and your spouse need to be in total agreement.

If one of you loves to shop and doesn't worry much about credit card debt while the other hates spending money like death, you have a problem. You can create budgets till Honolulu freezes over, but it won't work and chances, are, you and your significant other will end up fighting constantly.

Even before you start to create a budget, the two of you must sit down and discuss your life objectives. Get out a piece of paper. Make a list of long-term objectives the two of you can agree on. One might be to get out of debt. Another might be to make monthly contributions to a college fund for the kids. A third could be to begin a retirement fund. Or you might decide it's important that one of your get some specialized training that would lead to a higher salary.

Once you agree on your objectives, the two of you can start work on a budget. Step one will be to decide how much you will need to save (or spend) monthly to meet your objectives. You should subtract this first from your monthly income so you can see how much you have left over to work with.

Next, subtract your “secured” debt. Typically, this would be your mortgage payment, car payments, and any other loan payments where an asset such as a boat or RV secures the loan. Then, take a hard look at your other expenses and debt – for example, your rent, food, membership dues, clothing or credit card debt -- as these are the only areas where you can hope to make cuts.

It is important that you both agree as to where those cuts can be made. No matter how strongly you feel about drastically cutting a budget category such as clothing, if your spouse doesn't agree, you’re going to have problems. A better solution is to find a compromise – a number that gets you closer to where you think the spending should be but one that your spouse agrees is at least fair. Then, look for another category where you can make cuts to get your final budget number down to where it needs to be.

You should then sit down with your spouse twice a month to review where you are vs. your budgetary goals. You will most likely find that you're under in some categories and over in others. Don't worry about making adjustments at this time. Just make notes as to where you've over and where you're under.

After the first two months, you should know where you've been spending more than you budgeted and where you've spent less. The two of you can then discuss what adjustments you need to make. There should not be a lot of arguing because you have goals you've agreed on and a budget you created by working together.

The important thing is to keep the discussion from becoming accusatory. If one of you has been the “budget breaker,” it's better to ask “it looks like we've got a problem here, what to you think we can we do to fix it?” then to say, “you really screwed up this time.”

What can you do if you or your spouse just can't control his or her spending and keeps busting the budget, month after month?

Unfortunately that's an issue that probably needs the work of a good marriage counselor.

Have you heard about HD radio technology? It makes AM sound as good as FM and FM sound almost like you were listening to a CD ... and its free! To learn more about this amazing new technology, just go my Web siteto get all the buzz. Douglas Hanna is a retired marketing executive and the author of numerous articles on HD radio and family finances.

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~ Note from Tammy

A great home budgeting software and ebook You should check out is Leo Quinn's "Take Back Your Paycheck Again! with his budgeting software the Debt Cruncher.

Eliminate Debt => Life after Debt

2005-10-19T14:46:00.000-04:00

Life After Debt – Strategies for Dealing with Problem Debt
By Brian Sabalinski

Honorably and ethically rid yourself of burdensome debts using the little known Negotiation Strategy, without having to experience the loss of control and privacy associated with filing for bankruptcy, consolidation, or credit counseling.

The inability to reduce debt and saving money are the two biggest obstacles preventing Americans from living financially sound lives. National statistics show that money problems play a role in 80 percent of all divorces. One in 54 households will declare bankruptcy. Debt is at an all-time high, particularly credit card debt. The total amount of consumer debt in the United States is nearly $1.4 trillion.

If you are one of the millions of Americans burdened with debt and have trouble making those never-ending monthly payments, help is available. You don’t need to go it alone. If you are a typical American family, you have $25,000-$30,000 worth of credit card debt (excluding mortgages, car loans, and student loan payments), and you’re paying $500 to $900 every month in endless minimum payments.

Like you, many people continue making their minimum monthly payments believing that they are making progress. They are living in a state of denial saying "Someday, somehow, something will happen. Things will get better, and my debt problem will be gone." Then years go by and they only find themselves in a downward spiral getting nowhere. They have paid their creditors thousands of dollars but their debt load never gets lighter. For example, if you were to continue making minimum payments on a $9,000 debt, and not add any more debt, it will take you over 10 years to pay it off. You will end up spending many thousands more than the original amount and 80% of the money paid will have gone to interest and fees. Most people add more debt as they go, so the reality is this - Without an aggressive approach to terminating debt once and for all, you will NEVER get rid of debt.

Today, people have options. There are four strategies for dealing with problem debt you will see advertised: Debt Consolidation, Consumer Credit Counseling Services (CCC), Bankruptcy, and Debt Negotiation. Each strategy must be considered carefully!

Debt Consolidation – The Common Approach

Unfortunately debt consolidation is the most common solution people think of when they fall victim to financial problems. It is a sad fact that about 75% of people who consolidate their debt find themselves in much deeper financial trouble than they were in to begin with. All consolidation loans do is transfer debt from one place to another and is invariably a short term fix with long term pain. A debt consolidation loan will not reduce the amount you owe. You will still pay back 100% of the loan plus interest. This is not going to get you out of trouble and most of the time will only make things worse. Again, consolidation is not a plan to get out of debt but is instead just getting new debt to pay off old debt.

If you were to decide to consolidate, you would need to qualify first. Qualifications include equity in a home you own or other valuable, good credit and debt to income ratio. Most people burdened by debt find that even if they wanted to consolidate their debt they couldn't qualify for the loan anyway. Once you have taken out this loan, you have just gone from an unsecured debt to a secured debt - and gambling with all your assets. Consolidation loans are spread out over a 15 - 30 year period, leaving you exposed to losing your assets over the life of the loan. If you run into further difficulty in the future you stand to lose your home, car, and valuables.

The fundamental problem that people run into is that once the debts are paid off by the loan, they discover they have a new line of spending potential: empty credit cards. It's not long after these accounts are cleared that they are run up to the limit once again. This will leave you with both the consolidation loan and maxed out credit cards to repay. How are you going to repay the loan and the credit cards when you were unable to pay the previous debt in the first place? You will find yourself back in the bank for a second consolidation loan, extending your debt and making your debt problem even worse.

Bear in mind that being in debt leaves you with less cash you need to buy and plan for life's necessities. Although a consolidation loan may give you a lower payment and a little more breathing room, consolidation is not going to leave you with the cash to get you and your family through the next 10 to 30 years.

Consumer Credit Counseling Services (CCC) – Feeling of False Security

Consumer Credit Counseling Services (CCC) programs have a failure rate of 85%. They simply aren't effective. Here's why; you meet with a counselor who analyzes your monthly budget. The counselor will submit a proposal to your creditors for a reduction in the interest rates. You would then pay a monthly payment to them and they would then distribute that monthly payment to your creditors. These programs generally take 5-7 years to complete. The theory here is that your overall payment per month is lower due to the counselor's success at obtaining lower interest rates and more favorable terms with the credit card companies and banks. This approach is most often recommended by the banks themselves.

Here are the facts: CCC Services were created in the late 1970’s when credit card and loan companies began to notice that many people were having problems making their minimum payments and defaulting on their debt. In short, the so-called “non-profit” companies are owned by the credit card companies and banks! CCC agencies are funded by commission by the credit card companies based on the debt recovered from you, normally around 12 - 15%. This means that for every $1,000 you give them, they can take as much as $150. If you're paying them a service fee of $20 per month, and the creditors are paying them $75, you can quickly see that CCC agencies are not working for you but for the creditors.

In addition, you have no insight into what the CCC agency is doing on your behalf and no control over the repayment process. They send in their single monthly payment, with no idea of how much is going to which creditor. Since most counselors are busy people who work based on high volume, getting a return phone call can be difficult.

It’s key to know that with CCC programs, you still pay 100% of the debt plus a lower interest rate. The debt you walk in the CCC is what you walk out with. With all things considered, it works out to be about the same as your current minimum payments.

Bankruptcy – The Last Straw

Today more people than ever are turning to personal bankruptcy as a way of solving their financial problems. Estimates indicate that 2003 will see nearly 1 in 70 Americans filing for bankruptcy. People owing as little as $5,000 are unknowingly filing, not knowing of alternative methods of eliminating their debt. The reason people take this hasty action with such a low debt amount is the harassment and overwhelming pressure from impatient collectors trying to recover their money. In the case of Consumer Credit Counseling agencies, once they find that they are unable or unwilling to help, they will suggest bankruptcy as the answer – unconcerned of the effect it will have on your future.

In bankruptcy, a court order forces all commercial creditors to cease and desist from attempting to collect the debts you owe them. Depending on the bankruptcy declared (Chapter 7 or 13), it stops wage garnishment, reverses judgments, and generally wipes out debt.

For some people, bankruptcy is the only sensible option. If you have $60,000 in debts, and you'll never earn more than $1,200 per month, then you're broke! The sooner you eliminate the debt, the sooner you'll have a fresh start. With more than 1.4 million bankruptcy filings in 2000, Congress is passing legislation that will make it tougher to declare bankruptcy.

In bankruptcy, certain personal property is treated as exempt. The banks and creditors cannot touch that property in attempting to recover the money owed to them. Your home, car and other personal effects like clothing, and other assets are considered exempt, but this varies from state to state. Any property that is not exempt is liquidated and distributed to the creditors under the supervision of the court. Since most people entering bankruptcy have only exempt property anyway, there's usually nothing left to distribute, so the creditors typically get nothing.

Seems like a good deal? Many people mistakenly see bankruptcy as a good, low cost way to rid themselves of debt. There are other costs associated with bankruptcy that make it a very bad solution for most people. The cost of filing bankruptcy itself is minimal. Depending on what state you live in, you can expect to pay anywhere from $400 on up to $1,600 for the whole process. That’s just the beginning. The bankruptcy will stay on your credit report for 10 years – and on your court records for 20 years. The seemingly “low cost” method will cost you dearly as it will follow you for the rest of your life. If you ever apply for a loan, job, apartment or insurance, one of the first questions normally asked is "Have you ever filed for bankruptcy?" And, for the rest of your life, you'll have to answer "Yes."

You might be able to eliminate your debt, but the effects emotionally and the effect on your personal life will last for many years to come. Consider applying for a terrific job after you have filed bankruptcy. These days, employers will run a credit report to determine how you faired financially. This will effect whether the employer will give you that dream job or not. Even if you do get the job and your employer later runs a credit report on you, you will still have to explain the bankruptcy. While employers can’t fire you because of a bad credit report, they can certainly limit your future promotions.

Future purchases are affected as well; after several years, you may opt to purchase a home. If you're in sufficient shape at that point to qualify for a mortgage, you'll pay a higher interest rate than the average consumer who has never filed for bankruptcy. Assume you want to purchase a $100,000 house a few years after filing bankruptcy. You make a $10,000 down payment. This will result in applying for an $80,000 mortgage. While your “good credit” neighbor would obtain an interest rate of 4.5%, you would get a rate of 7%. While it seems that the extra 2.5% difference is not bad for having filed bankruptcy in the past, it’s what you will pay monthly where you will feel the pinch. That extra 2.5% on a mortgage will increase your monthly payment by $200 per month with the total of your payments reaching more than $70,000 over the 30-year life of the mortgage.

Besides being a devastating blow to your credit, a bankruptcy can also be a very stressful and embarrassing decision to continually have to explain to every potential lender. If you have no choice, then you should proceed, understanding the consequences. However, the majority of people who take this method of debt elimination don't know what they're getting themselves into or the consequences thereafter. They are desperate, and they get talked into filing bankruptcy by the collectors or attorney without understanding the impact on their financial future.

Keep in mind that personal bankruptcies are usually unnecessary as there are better options available. Many people are forced, against their wishes, to file bankruptcy to protect themselves from aggressive creditor tactics or attorney. Ultimately, bankruptcy still means failure to employers and creditors.

Debt Negotiation - Light at the End of the Tunnel

Few people realize that there is another solution to burdensome debt, an approach that levels the playing field between you and your creditors, without having to go to court. The debt negotiation strategy will put you back on the road to financial freedom and in control of your life again.

The Negotiation Strategy allows you to turn that $25,000 of credit card debt into $12,500 or even as little as $9,000. In most cases, our clients have debts totaling $8,000 and have successfully saved them thousands while maintaining a reasonable credit rating. With a professional debt negotiator working for you, your debt can be cut in half or less.

How it works: Put yourself in the shoes of a manager of a collection department for a major credit card company. You know that bankruptcies are at an all-time high and that the chances of collecting on the outstanding debt worsen as the debt ages. You have the opportunity to close your books on a delinquent account by collecting 50 pennies for every dollar owed by the debtor, or take a chance on never collecting a single penny by trying to hold out for the full value. You also realize that once the debt leaves your bank (usually after six months or so), it will go to a third-party collection agency. The agency will take at least 15%-20% commission right off the top of whatever they collect, and they are unlikely to collect more than 70% of the debt even with the most aggressive tactics. So you'll probably never retrieve much more than half the money anyway. When you look at it this way, collecting 50% now doesn't seem like such a bad deal.

The way it’s described, it sounds easy. You might be thinking, “I’ll the collectors and do this myself." You'll reach the "customer service team" and the representative will inform you that other banks may settle for 50%, but their bank never settles under any circumstances. Of course, they do have that “great” hardship program for you. After you've called a few times and received the same treatment, you’ll probably end up with the idea that debt negotiation doesn't work. The banks will rarely take a debtor seriously. They simply don't believe you and they think your hardship story is phony. The banks are quite prepared for the amateur do-it-yourself negotiator. They have the telephone scripts set up so that by the time the conversation is over, you will feel guilty about the money owed, and their lame hardship plan sounds like a great deal after all.

Having a third-party professional on your side makes all the difference in the world. Once your creditors realize that they are talking to a professional, someone who knows the laws and regulations, they quickly change their tune. A negotiator will obtain better results than you could ever obtain on your own, simply because all of the bank's tactics are stymied by the fact that they can't talk directly to you. They can't apply psychological pressure to you since this is filtered out by your Professional Debt Negotiator.

Consider this: Creditors pull out all the stops when you fall behind. They have gangs of collectors ready to pressure you with carefully scripted techniques and mind games. They have attorneys and collection agencies ready to step in and go after you full throttle. You need to level the playing field. The best and only way you can concentrate on improving your financial future is to let a professional deal with the aggravation of the nonstop phone calls. Bottom line - If you're looking for the most effective, low-cost, and fastest way to terminate your debt problem once and for all - Negotiation is the answer.

Drakeport Financial will host a free Debt Management Seminar for people who wish to correct existing debt problems or avoid the possibility of such problems developing in the future. Seminars are held Saturday mornings from 9 to 11 a.m. at locations throughout the United States. Call Drakeport Financial today toll free at 866-676-4945 for more information. You may also visit the website: http://www.drakeport.com

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There is one additional option for eliminating Credit Card and Personal Debt just check out the Links section for How to Take Back Your Paycheck Again...Tammy

Debt Management ~ Organize to Save Money!

2005-10-16T16:01:00.000-04:00

Debt Management - Debt Free Living

Organization Reduces Late Fees and Overcharging
By Taffy Wagner

Debt is a subject that no one likes. Once you are out of debt, you make a commitment to yourself not to return to that place. One morning you are sitting in your home and the telephone rings. Lo and behold, it is a creditor on the other end of the phone stating that you have a remaining balance on an old collection bill. The attitude that comes through the other end of the phone is one of harsh. “Why didn’t you pay the bill?” Not an attitude of compassion for whatever situation you may have been through that prevented you from paying the bill.

Are you simply left speechless by the phone call? First, listen to everything the person has to say without the attitude. Once they have finished, you begin to reply that the bill was paid and have documentation. It is important to request they send you correspondence in writing so you can complete your research.

After this correspondence arrives in the mail, what do you do?

1) If you are absolutely sure that you paid the bill, retrieve that information from your folder. The letter that states it was paid in full.

2) Write a letter to that collection agency stating the facts and sending a copy of the proof. Send certified mail.

3) Send a copy to the State Attorney General’s Office and FTC.

4) This should close the matter and you will not have to pay anything.

However, if you cannot locate any copies of your settled documents, then you might be in a situation. Depending on how many years ago it was, there might not be any way to retrieve any documentation. You may fall into the situation of having to pay. This will more than likely occur:

1) The company has already assessed interest on the bill raising it to a higher number.

2) Begin the process of trying to settle the bill with the company for a lower amount. Negotiate in writing.

3) Pay it off when you have reached an agreement. Make sure that you keep a copy of the documentation this time that the matter has been settled. I also recommend that you keep a copy of the settlement check. I have used money orders before so that I have a receipt. I attach it to my copy.

When you are in debt and have bills that have to be settled and/or paid off, organization is very important. Collection agencies will try to come back and retrieve money that has already been paid, dismissed on a bankruptcy, or the statute of limitations has run out on. Do not fall into the trap of overpaying, paying late fees because you did not keep the proper documentation. I recommend having a physical file that you keep for at least ten years.

We have a file which includes when each car was paid off and used to get another car, and copies of all the credit reports for the last 10 years. This has been a good thing for us, because I have even come across a credit report or two that showed a bill was settled in full when a collection agency tried to collect on that paid account.

Organization and records are important when restoring your financial future. Keeping documentation for each bill you settle will potentially stop a different agency from trying to collect a second time in the future. However, if you do not keep the documentation you may have to pay those charges and late fees a second time.

Dr. Taffy Wilkins Wagner is the author of Debt Dilemma. Debt Dilemma is her own personal story of how she got into debt, was getting food from the food banks and got out of debt without filing bankruptcy. On October 18th, she will hold a massive marketing campaign to sell her book on Amazon.com. For further details please visit her website at http://www.journeytowholeness.net.

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When it comes to eliminating credt card debt, I highly recommend Leo Quinn's ebook and home budgeting software program ~ it's well worth a click to regain control of your money! :-)
Tammy

Money, Debt and Children ~ Financially Healthy Family

2005-10-15T18:23:00.000-04:00

7 Secrets to Having a Financially Healthy Family
By Lori Radun

How many times have you replied "We don't have the money for that" when your child asks you to buy him something? His innocent reply is "Get some from the machine or the bank". You think to yourself, "If only it were that easy". Managing money is a tough concept for children to grasp, and sometimes equally as challenging for parents. In order for your children to develop healthy money habits to take with them into adulthood, you, as their parent, must manage your money wisely and be diligent about teaching the concept of money to your children.

So what are the secrets to having a financially healthy family? I had the pleasure of talking with my dear friend Thea, who happens to be a financial planner for A.G. Edwards, and an expert at managing money. Together we compiled 7 secrets to having and teaching financial success in your family.

1. Having a monthly budget to work with is a must. If you have never sat down and figured out how much money you spend in the various categories, now is the time to do that. For two months, actually record every penny you spend and assign it to a category. Typical categories include utilities, housing, entertainment, education, automobile, groceries, health and beauty, dining out, savings, etc. Many people are amazed to discover where their money actually goes. To develop a budget for your family, you need to know how much income the family brings in and your required expenses to live. Assign a specific dollar amount that you will spend for each category. Having a budget is not about limiting yourself - it is about making choices and deciding what's most important to you. If having a fancy car is very important to you, then you cut back in areas that aren't so important to you. If you want to be able to eat out once a week, then consider making cuts in your grocery expense.

To teach your children about budgeting, here are two exercises you can do. At the beginning of the month or whenever the family gets paid, cash your checks and lay all the money out on the table for your children to see. Get out all your bills and work together with your children to match up the appropriate amount of money with each bill. Let them see where the money goes and how much it takes to manage a household.

Another thing you can do with children who are a little more mature is give them a budgeted amount for a specific event, shopping excursion, or vacation. For instance, if you are taking your children to a theme park for a day, give them $75.00 (or whatever amount you want). Then you tell them that whatever they don't spend they can keep! Let your child pay for his own admission ticket, food, souvenirs, etc. Children will learn quickly how to manage their money.

2. Keep your total housing cost to 30-35% of your total income. Some people say the housing cost includes your mortgage or rent and your utilities. Others say that it includes only your mortgage or rent. Either formula you use, if you have a household income of $50,000 per year, then your housing expenses should not exceed $1458.00 per month.

3. Do not carry any consumer debt. The American culture reinforces instant gratification and that is why so many Americans have huge credit card debt. There is nothing more damaging to your financial success than credit cards. I realize credit cards may be a lifesaver for people who are really struggling financially. Believe me, I've been there. But I tell you from experience, use credit cards for emergency purposes only. If you have big ticket items you would like to spend your money on (furniture, vacation, car, remodeling), make a list of those items and put it on the refrigerator. Decide what's most important to you and start putting money away every month so you can pay cash for those items. How do you teach your children this concept? Do not let your children borrow money from you unless they can pay it back right away. If they don't have the money to buy something they want, make them save their money until they do.

4. Strive to put away 10% for emergency savings. I know many people who live from paycheck to paycheck, and putting away money for savings is unheard of. Try really hard to put something into a savings account, even if it is just a small amount. If you have the ability to have money deducted from your paycheck for a 401k or retirement, take advantage of that. Once you get used to that amount being gone, you will adjust and you'll never miss it. Open a savings account for each of your children at a very young age. Take them to the bank and encourage them to save some of their money. Let them experience the thrill of seeing their bank balance rise. Another fun way to teach kids about money is help them decorate 3 separate jars or coffee cans. Label them "Spend, Save, and Donate". Given them a weekly allowance and encourage them to contribute a certain amount to each of their banks every week.

5. Never go over the breadwinner's income. This is advice my mother has given me often and when I was younger, I baulked. Now that I have become wiser and actually made the transition from a two income family to a one income family (with the same set of expenses), I know this is good advice. I know this can be a tough example to live by, but it is worth the effort. You never know when one person may lose their job. If your expenses don't exceed the breadwinner's income, then the rest is gravy.

6. There should be no financial secrets between husband and wife. Each partner in the marriage should know exactly what is happening with the family finances. Funds should be merged and each person should be accountable to the other for financial decisions. Decide between the two of you what dollar limit needs to be discussed first before purchasing. Pay the bills together or at least communicate the financial picture after the bills have been paid. Too many couples divorce over money issues. Do your best to work together on money.

7. Have an "abundance attitude". What does this mean? Realize that money is just a tool. It is not the answer to happiness in life. If your tendency is to hang on tight to your money, try learning to let go. When you have a giving spirit, you will be blessed tenfold.

Lori Radun, CEC - certified life coach for moms. To get her FREE newsletter and the special report "155 Things Moms Can Do to Raise Great Children", go to http://www.true2youlifecoaching.com

Law of Attraction - Money Mistakes!

2005-09-25T13:36:00.000-04:00

Are You Making These 5 Money Mistakes?
By Jeannette Maw

Lots of people want more financial prosperity in their lives. And yet most continually sabotage that desire without realizing it! Be aware of these five big money mistakes we make in attracting & allowing more of it into our lives:

1 - Worrying about money. If you're familiar with the law of attraction, you know you get what you worry about. Worry about money, and you'll get more to worry about! This is the numero uno culprit to being financially strapped for most people. (And trust me, it is work to be financially strapped!)

2 - Perpetuating unsupportive beliefs. Do you believe or have you said any of the following?: It takes money to make money; Money doesn't grow on trees; You've got to work hard for your money. These limiting beliefs keep financial abundance from you.

3 - Being stingy with the green stuff. When you're stingy with money, it is stingy with you. (Your vibration dictates it.) Hoarding cash comes from our "lizard brain," and is not a vibration that allows more money to flow into your life.

4 - Expecting bad money things to happen. Maybe you just "know" the estimate from the car shop will be astronomical. Or you "always" miss the good bargains. Financial success will "never" be easy for you. One thing you can count on is that you get what you expect!

5 - Not being grateful for the wealth you do have. We're a prosperous nation, and yet we're full of complaints about not having enough. Consciously acknowledge the wealth in your life regularly, and by doing so you set yourself up for getting more of it.

The bottom line is we get what we think about. If you want more money, know that it is yours to have (so you can stop worrying and start relaxing). Give up your bad beliefs and adopt new ones: "I'm a money magnet!" Count your blessings everywhere you can. If you've had trouble with finances in the past, know it can be different. Expect it, and allow for a new experience. I repeat: It can be different! Expect it to be good!

So tip the waitress well, be generous with yourself too, and let the money flow easily into your life. And if you need help faking it till it's reality, email the Good Vibe Coach at jmaw@goodvibecoach.com.

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Jeannette Maw is a Law of Attraction Coach and founder of Good Vibe Coaching, specializing in helping people get more of what they want, and less of what they don't. To subscribe to the free Get What You Want ezine, go to http://www.goodvibecoach.com

When it comes to Money ~ Think Outside the Box!

2005-09-20T09:06:00.000-04:00

Forget "Thinking" Outside The Box…GET Outside The Box!

I happened to overhear a conversation the other day between two men…

Young man has started learning about real estate investing. He has read books and attended seminars put on by some gurus who make more money selling information about real estate investing than they do investing in real estate BUT at least he is taking the initiative to learn more. This is more than most people will do.

Old man owns his home. Young man wants to buy real estate as an investment….apartment buildings, office buildings…that type stuff. Old man has no experience in this area. During the conversation old man says to young man…"are you doing anymore of that real estate nonsense?"

By "nonsense" I know old man was referring to attending the "get r*i*c*h quick" type seminars and not a condemnation of real estate investing. BUT it came across as a condemnation of the young man’s process of educating himself about something new….something that could improve his life and the lives of his family.

Unfortunately, you probably have people like that in your life. You may BE a person like that in someone else’s life. People in your "box" don’t want you getting out!

You know the type. Negative about any attempt you might make to improve your life…to be different…to stand out….to be more successful than they are.

I heard a great analogy for this by attending a free investment seminar. I knew this guy would be advocating some risky financial moves but I figured since I was in the seminar giving business myself, that I might be able to learn something useful. I did.

The people you associate with most are probably just like you. You have similar educational backgrounds, families and incomes.. You live in houses and drive cars of similar value. You attend the same church…your kids attend the same schools…you shop in the same stores. You get the idea.

One could say you are in the same "box" or rut.

The analogy continues...

Unfortunately, the "instructions" on how to get out of your "box" are posted on the "outside" of your "box" where you can’t read them. You’ll need the help of someone who has already made it out, to "read" you the instructions so you can get out too.

It’s not enough to get that help though. You’ll probably have to deal with your "boxmates" who would rather you stick around to keep them company in their sad little "box."

In listening to the conversation between old man and young man I immediately flashed on the image of young may starting to climb out of the box and old man reaching up and grabbing him by the belt to pull him back in.

Sad but all too common I’m sure. If any of this sounds familiar you might have some hard decisions to make.

If completely getting rid of a negative person from your life is not possible (spouse, relative, employer) then you might have to clam up about your goals, dreams and desires.
Discuss them only with people who will support you or preferably with people who have already done what you want to do.

Author Dan Kennedy has coined the phrase "mediocre majority" to describe most people. This is a group you want to avoid.

So, no matter what you want to accomplish, be it changing your life to get out of debt…starting a business…going back to school (imagine at your age!)…investing in real estate…mystery shopping…losing weight…taking piano lessons or anything else, simply get started and keep the pie hole shut! (salad hole if losing weight)

Good luck!

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Leo J. Quinn, Jr. is a financial educator from the Albany, NY area. For the last eight years he has been stunning audiences by showing them that paying off their highest interest rates debts first and/or paying extra on more than one debt is often the SLOWEST way to get rid of those debts. He has a special offer for readers of my blog at How to Own Your Paycheck Again!

Eliminate Your Credit Card Debt, But How?

2005-09-10T19:16:00.000-04:00

Eliminate Your Credit Card Debt, But How?
By Steve Faber

Can a debt consolidation loan eliminate your credit card debt? A consolidation loan might (or might not) be the key. There are several things you must consider when making the choice to consolidate debt using a debt consolidation loan.

First, is a debt consolidation loan your best choice to eliminate or substantially reduce your debt? There are other options available to you, including credit counseling and bankruptcy. Obviously bankruptcy is a last resort. You must examine several factors when making your decision on which debt reduction / elimination strategy to use. You need to get information on debt consolidation to make the correct decision.

•How much outstanding debt do you have?

•What is the interest rate of your current debt? Many credit cards have interest rates of 14% - 22%, depending upon your credit rating and payment history. Obviously, the higher your current average interest rate, the better off you will be if you consolidate your debt with a consolidation loan at a much lower rate.

•How much of your outstanding debt is unsecured? Unsecured debt has no collateral against it. Credit cards, student loans, store charge cards and medical bills are examples of unsecured debt. If you have over $7,500 in unsecured debt there a multitude of lenders that you can look at. Student loans fall into a different classification from other types of unsecured debt. In the United States, most are backed by the federal government. Usually you will have to use a secured debt consolidation loan to pay off your unsecured loans. You may also be able to refinance your secured debts, but you usually cannot consolidate secured debts.

•Do you own a home or other substantial assets to use as collateral for a debt consolidation loan? If you own a home or other real estate, how much equity do you have in it?

•What type of interest rate is available to you for a consolidation loan? The interest rate you receive on your loan is affected by a multitude of factors including the prime rate. For student loans, the borrower interest rate on consolidation loans is currently calculated as the weighted average of the interest rates in effect on the loans being consolidated, rounded up to the nearest one-eighth of 1 percent. They are capped at 8.25 percent.

•How is your credit rating? Someone with a very good credit score has options open to them that those with lesser credit ratings do not.

Keep in mind that if you have more than 20% equity in your home, you are usually not required to carry private mortgage insurance (PMI). If you have reached the 20% equity stage through either paying down the principal, asset appreciation, or both, you can probably drop PMI and lower your payment. On the flip side, if you are not paying PMI and you take out a consolidation or other home equity loan, you may put yourself back under the 20% equity threshold. This would require you to get a new PMI policy. Factor this in when making your cost / benefit analysis.

If you are constantly slipping backward and your cash flow is poor, you can improve things with a debt consolidation loan. Be careful and weigh your options carefully. Take into account the tax benefits you may receive by using a home equity loan to consolidate your debt. This benefit will vary depending upon your tax rate. You can get many free quotes for debt consolidation loans. There are several places that have multiple lenders compete for your business. Talk to several lenders to see which will give you the most favorable terms. You can substantially lower your monthly payment and significantly improve your cash flow situation with a debt consolidation loan. Just make sure this is the right choice for your needs.

Steve writes about a multitude of topics from home theater and automation to business and finance. See his website, The Debt and Loan Consolidation Guide for more information.

Winning Over Credit Card Debt!

2005-09-09T15:03:00.000-04:00

Defeating Credit Card Debt With Self Control
By Roy Thomsitt

Credit card debt is a major social problem in some Western countries. To rid yourself of credit card debt, it is best to recognize the problem as both a social and individual problem.

If you are overburdened with credit card debt, or are in danger of becoming so, it is very easy to see it purely as an individual problem, one from which you may be suffering both physically and mentally. Worry and stress can be silent marauders into your physical and mental well being. Debt can undoubtedly cause both worry and stress, not just to the debtor, but their immediate families too.

Why Should You Care About The Social Causes of Credit Card Debt?

If you wish to overcome your credit card debt problem, you will benefit from removing some of the social influences. They are a major influence on the way you react, think and behave. Remove the social influences, and you take a big stride in your journey to eliminate your debt.

I do not, of course, mean remove the root causes of credit card debt. You cannot do that. What I am referring to is to prevent the social influences from penetrating you and taking over your life. As an individual, you have the right to resist social influences where they are harmful. The liberal, unfettered use of credit cards is an influence you will benefit from resisting.

Just by being fully aware of the social influences, you have made an important step. You will more likely be on your guard, and by asserting your individuality, you are more likely to overcome or prevent the credit card debt problem.

What Are The Social Causes Of Credit Card Debt?

You could spend years analyzing the credit card debt problem. Here are just a few of the influences at work in the society around you:

1. Credit card interest rates are high, therefore the profits can be high. Banks and other credit card issuers are after their slice of that big money, including from you. They can therefore justify big marketing budgets to get your money. I deliberately do not say “get your business”. You will resist better if you think “they are after my money.”

2. It is very easy to get credit cards, multiple credit cards in fact. Issuers of credit cards make it easy for you, if you have had no debt problems in the past. If they seem to take it lightly, it is understandable that their customers do too. But remember, they take the risk factors into account when setting interest rates. That’s why they are so high.

3. Your friends, neighbours and work colleagues will probably all have multiple credit cards, talk about them and flash them around from time to time. That can all influence your own attitude to credit card debt. 4. Depending on what country you are in, yours may be a “have now, pay later” society. Immediate gratification can take precedence over common sense. If everyone else is doing it, it surely must be right? Wrong. Especially if the interest rates are too high.

5. You see other people buy new furniture, go on exotic vacations, or go out to expensive restaurants all the time. Even if you never know if they are doing so on credit card, you may want the same. But you do not have the immediate cash, so what do you do? Jump on the credit card train? That is what your society may be pushing you towards.

How To Resist the Social Pressures To Succumb To Credit Card Debt

Due to the overwhelming pressures of the credit card society, it can be quite a difficult task, initially, to change your own attitudes. But by asserting your individuality, you can steadily eliminate the social conditioning. It is really a matter of how you think in certain situations. You are in charge of the way you think, so all you need to do is what is natural. Not what everyone else seems to be doing around you, but what is natural to you as an individual. Think to protect yourself, assert yourself, and to look after your financial well being.

Here are a few ideas to help you:

1. Whatever type of loan you may apply for, you are after just one product, money. Different types of loans are marketed as separate products, in different packages, but to you, they should all be one: money. The money, once you have it, is all the same quality. A dollar is a dollar, a pound is a pound, a euro is a euro. Having engrained that upon yourself, knowing you are just after this single product, you need only look at price. Credit card debt is very, very expensive. The interest takes money from you, and reduces your assets. If you need a loan, you want the lowest possible interest rate, one that does not unnecessarily leech your assets.

2. A credit card should only be used as a convenience to pay if you have no cash on you, knowing that you can pay off the balance before interest charges kick in. Many cards have an interest free period. Never use credit cards as a loan beyond that free period. Others do, but you have no need to. You can eliminate that idea altogether. You are creating a new habit that will enhance your financial situation, and resisting an old common habit that would ultimately damage your finances.

3. Plan all your borrowing. Sit down and write down what you absolutely must buy over the next year, and add what you would like to buy. Total the cost. Write down a budget for each month, making sure you have listed all your regular expenses that are fixed and unavoidable, and those over which there is some flexibility. Compare that total with your income. If you have a surplus, then you can think about those extra purchases you had in mind. If not, don’t think any more about them. You cannot afford them, and cannot afford to borrow.

If you have a planned surplus, then maybe you can get those things you wanted. If you can afford all of them, and there are quite a few items on your list, then forget about getting a loan. Be patient, resist the have now pay later syndrome. You can save interest and buy a bonus item with that later if you really must. You are in a great position to pay cash. Prioritize the things you want to buy, and note their cost, and then work out a plan by which you buy one item at a time spread throughout the year. Why pay the banks credit, when you can pay cash? You will save not just the interest but maybe get cash discounts. Cash gives you control. With credit you are subservient.

If, on the other hand, there are just one or two more expensive items you want to buy, it is time to compare options and test your resolve. If you save your surplus each month, consider how long it will take to have enough for item 1 and maybe item 2. Are they really urgent? Probably not. Maybe you can save for one after 4 months and 2 after 9 months. That way you are getting into the habit of saving, and living off cash. Cash is king. Your finances will start to look good over time, and you’ll start to feel proud of yourself. You will feel in control.

Remember too that by saving, if an emergency comes up, you may have the cash at hand instead of reaching for that expensive credit card.

You really cannot wait and save? That is a pity, but now check out all the loan sources suitable for your intended purchases. Get the best plan, the best interest rates, and apply, with the intention of using that loan just for what it is intended, and to pay it off within the time scale of the spending plan. In the example one year. Stick to that discipline, and your credit is still under your control. And, you have avoided reliance on expensive credit cards.

4. Remind yourself every day that you are only going to use your credit card when you have no cash on you, as a convenience, and you will repay it before interest starts to accrue.

5. Also remind yourself every day that sometimes it is good, or even necessary, to be that bit different, and to resist social pressures. Imagine all the credit card lemmings heading towards the precipice, while you relax in your counting house, counting out your money. Real money; your assets. Anyway, it’s great sometimes to be different, it really does make you feel good about yourself.

6. Never, ever feel you have to buy something just because a neighbour or friend has been boasting about theirs. Envy and jealousy are viruses that minimize your individuality, and can, in this case, damage your finances.

Resisting the pressures of the credit card society will be a lot easier once you have set your mind to it, and started to feel the benefits. Enjoy the process, and you will be a cash convert for the rest of your affluent life.

Roy Thomsitt is the owner and part author of http://www.eliminate-credit-card-debt-now.com

-----------------------------

I have found a program that I use that also deals with how to eliminate credit card debt ~ in fact ALL personal debt and I encourage you to learn more about Leo Quinn's program => How To Own Your Paycheck Again!

Start Your Debt Free Journey Today!

2005-08-31T19:33:00.000-04:00

Start your debt free journey today! I am simply Passionate about the Power of this!

Start Your Debt Free Journey Today ~ You CAN begin Again!

Take your first step here => Click here now!

Tammy
WAHM Connections

Credit Card Debt Elimination - Simply, Effective Tool!

2005-08-29T19:38:00.000-04:00

Credit Card Debt Elimination ~ Sometimes the first thought is change your phone number or declare bankruptcy to ease up on the stress of credit card debt. This isn't some hype, song and dance or slight of hand that suddenly makes credit card debt disappear. I'm following Leo Quinn's debt management plan and have posted one of Leo's articles ~ Stop Saving Now! Plus more information on how a unique home budgeting software designed by Leo Quinn can determine which bills to pay first and when you can clear those debts. He can explain it better than me ~ read his article and see if it fits your needs. ;-)
Tammy

Eliminate Debt? Is it possible?

2005-08-27T13:11:00.000-04:00

Debt Elimination
By Roy Thomsitt

If you have multiple debts, you may well be wishing you had a debt elimination wand to wave and make all the debts disappear. You would probably wish even harder for that magic wand if you were falling behind with, or at least struggling hard to keep up with, the monthly payments on those debts.

The notion of debt elimination, though, is in most cases a fanciful one, at least in the short term. If you have debts of $15,000, where will you suddenly find $15,000 for the elimination of those debts? If you have debts of $30,000, how can you suddenly just wipe out that amount? Realistically, you have little hope of reducing your debt balance to zero in the short term, if your debts are anything like that sort of level. Unless they win the lottery, or come into some inheritance money, the average person cannot suddenly find such sums.

If your debt situation is really bad and out of control, then you may be considering bankruptcy. That may wipe out your debt, but it can be a very unpleasant process to go through. The laws vary greatly between countries, but can sometimes be quite draconian, and greatly inhibitive for your future actions relating to money. Debt elimination by bankruptcy is an extreme which, if at all possible, is to be avoided by those who have pride and wish to make a genuine attempt to resolve their debt problems and plan a better financial future.

Also, if you have debts out of control, you may be considering debt negotiation. While this will not lead to debt elimination, it may help reduce the immediate pressures and make it easier to eliminate those debts some time in the future.

Of course, with lower amounts of debt, you have more of a chance, so it really does depend on both the debt level and your personal situation as to whether it is feasible to reduce your debts to zero in the foreseeable future. In the longer term, it is definitely possible, but there again the difficulty level will depend on the amount of debt and other personal circumstances.

What Are The Steps To Eliminate Debt?

Your precise steps to debt elimination will depend on your current financial situation and other personal circumstances. However, there are some broad steps that you can follow which can help you achieve debt elimination with patience and determination.

This debt elimination article was written by Roy Thomsitt, owner and part author of the Eliminate Credit Card Debt Now website.

===========================
My top recommendation for Debt Management is Leo Quinn's Take Back Your Paycheck Again! Learn more about how to eliminate personal debt here<=

Tammy ~ Working the Leo Quinn Program!

Eliminate Debt - Pitfalls of Credit

2005-08-09T21:31:00.000-04:00

A big chunk of personal debt is debt we incur getting
things we could either live without OR could put off
purchasing until we can pay cash ~ Our will power or
lack of self control plays a key role in our growing
problems with debt!

"How To Own Your Paycheck Again" teaches you how to
quickly and efficiently eliminate your debts.

Be sure to read through our articles on how to elimiate
debt learn to achieve debt free living!

~
Pitfalls of Credit

Life, these days, is governed by the culture of credit.
In this highly materialistic world, you feel you can't
afford to be left behind so you resort to taking credit.
Moreover,the incredibly tempting offers flashing from every
corner are hard to resist. Thus you invariably get into the
habit of spending more than what you earn.

Have you ever realized that you become a creditor as soon
as you apply for a credit card, personal loan, interest
free term, mortgage, or even an I.O.U. at your local
grocery store? We also become debtors of our friend when we
ask them for some money to get us by till until our next
payday arrives.

Once you jump the credit bandwagon, your woes will never
end. Statistics collected by innumerable surveys reveal
that credit related suicides are on the rise and many
families are breaking up from financial stress. Even people
leading decent lives are pushed below the poverty line when
they cannot return the amount to the creditors. But the
lure of credit does not seem to wane. The word "defer"
coming in the definition of credit does seem ironic when
one considers the fact that the benefits we enjoy while
deferring their payment come to haunt us in the near
future. This deferment leads to high bills, extra work to
pay off the credit and lack of joy in life as a result
thereof.

Meanwhile credit agencies place the debts in the
hands of collectors who hound you for payment, who
promise that you will never be granted credit again,
who make your life a living hell and encourage thoughts
of running for the hills. Most don't run but they probably
resort to never answering the phone again either. Is
that living? No, probably not but it is all done in the
name of credit.

This brings us to the vital question whether the
credit agencies have no social responsibility? Should they
not ensure that you have the means to repay the credit you
areasking for? Should they not verify the information
youprovide on the application form? And so on. All
such agencies have a social responsibility and should be
made answerable for creating these new-fangled facilities
andflooding the market with irresistible temptations. Not
long ago, it was considered a value to live within your
meansand spend what you earn plus save for a rainy day!

What has become of those values? In the 21st century these
age old norms have succumbed to the pressures of
one-up-man-ship. It is considered more important to excel
your neighbour,credit or no credit!

In the ultimate analysis it depends on you and your
will power to decide whether you want to live with the
tension of unpaid bills or compete with your neighbour to
show himdown. In this time of over-choice you have to make
your choices prudently.

Gutschrift Halteseil is the owner and webmaster of
Ya Credit, a
leading Internet portal for credit information. For
more credit information and resources, be sure to visit:
http://www.yacredit.com

Living Debt Free ~ How To Own Your Paycheck Again!

2005-08-03T17:00:00.000-04:00

How To Own Your Paycheck Again!

Have you ever heard of this program? I have it and want to share it with you...

In Leo Quinn's How to Own Your Paycheck Again ~ You will learn:

Why a savings account isn't the answer and can COST you thousands of dollars.

Why paying off high interest debts first can be the SLOWEST way out of personal debt.

Why putting extra money on several of your personal debts can actually keep in debt longer.

Why having many debts can help you get out of debt faster ~ No I'm not kidding!

AND...

How to calculate EXACTLY when you can be out of debt ~ Living Debt Free!

Sound to strange to be true? It's simple in its design its scary!

Find out today how Leo Quinn's How to Own Your Paycheck Again can get you back on track!

Tammy

Money and Budgeting Make You Fidgety?

2005-08-03T16:13:00.000-04:00

Living Debt FREE ~ Samantha sent me this article and it fit nicely in our goals to Eliminate Debt ~ She's right, it makes me UNEASY!

Ideal Approach to Personal Finance

The subject of personal finance instills all sorts of real
and imaginary fear in an individual. Even educated
individuals feel edgy when it comes to making budgeting,
investing and renting Vs buying a home decision.
Experienced people, particularly in the area of business
where decision-making is a regular feature, also aren't
quite sure as far as their personal finance is concerned.
Hence, many people put the issue of dealing with their
personal finance on the back burner till they reach a
crisis point in their debt or credit dealings.

Many people have only vague idea about their current
financial position. But a firm idea regarding it is
absolutely necessary before any decision regarding their
finances or taking any action thereof could be taken.
Experts find, to their dismay, that most of the people have
only hazy idea of their net monthly income and total
spending with the result that they are not sure whether
they are saving some money or not.

Assessing your financial situation is the first step
towards fiscal prudence. You should gather all information
and documents that reveal your financial condition. This
includes tallying your net worth, including real estate,
superannuation, monthly income and all other assets.
Observe the total and set up a budget for yourself by
listing all your expenses. Honesty would be the best policy
in this matter. So don't leave any expense out, as you
would be only cheating yourself.

Once you have made a budget for yourself, you arrive to the
next step required for tackling your personal finance. You
should do a survey regarding services available in the
market like electronic bill pay, investment counseling and
seeking tips and hints for financial prudence. For people
who do not have the time for bill payment or simply don't
care, Electronic bill pay or BPay is the most suited.
Option to get your bills by email rather than snail mail is
also provided by most companies. Paying them electronically
through direct withdrawal from your bank would save you
time and money besides the transaction getting immediately
processed.

With these two major steps forward you will gain enough
confidence to venture into other areas of personal finance.
Once you have a grip on your budget and the hassle of
paying the bills out of the way, you won't be scared of
entering into the field of investments and stocks and
shares. You can rely on the Internet to find out various
options and strategies available in the market. You'll be
amazed to see how many references are available about
investments such as term deposits, managed funds, buying
stocks and shares and taking part in share clubs.

Of course, you will tread cautiously and start with opening
a short term savings deposit account, in which you can put
in your savings every week or every month. That's the best
way to start. Soon you will be saving bigger amounts for
fulfilling your dreams to buy a car, go on a holiday or be
prepared for a minor surgery.

Samantha Flokigge is the owner and webmaster of Fuzzy
Finance, a leading
Internet portal for finance information. For more finance
information and resources, please stop by:
http://www.fuzzyfinance.com

How's Your Credit? Credit Reports Inside and Out

2005-07-28T16:09:00.000-04:00

Credit Reports Inside and Out
By Carmen Shearer

The Credit Report is like your scorecard in the lending world. Every time you prepare yourself to acquire or purchase something that requires financial assistance from a lending institution, your credit report will be your “presentation card”.

You also need to realize that other entities like employers and insurance companies often use your credit score to determine if they want to do business with you.

There are three credit bureaus where you can request a copy of your credit report (Equifax, Trans Union and Experian); and the information that you’ll get with any of these three bureaus it’s basically the same: your current and previous address, social security number, date of birth, current and previous employers and of course a list of every single open account you have with data like: credit limit, current balance, minimum payment, and your payment behavior.

Once the Credit Bureaus gather all your information, they give you a rating between 300 and 850, being 850 a perfect credit score. Each Credit Bureau makes its rating individually, and you will want to get the blended credit score at least once a year.

You can’t assume that because one of your reports is showing accurate information that the other two will be showing the same. In fact, it’s very common to discover discrepancies between the three reports.

Also, you must know that a credit score under 600 is consider very risky and a credit score above 700 is consider very good.

You should set a goal of keeping your credit score above 700 at all times, because excellent credit will lead you towards a better life.

Copyright © 2005 Excellentcreditnow.com All Rights Reserved

Carmen Shearer is the President and CEO of S&S Financial Services. She has worked in the finance arena for over 10 years and holds two engineering degrees and an MBA from a branch of Harvard Business School. S&S Financial Services offers you credit repair tools and information with a lifetime guarantee. For more credit related information go to S&S Financial Services

Eliminate Debt ~ How to Get an Instant Pay Raise!

2005-07-26T13:20:00.000-04:00

How To Get An Instant Pay Raise
by Leo Quinn ~ How to Own Your Paycheck Again!

As a gentleman was leaving my class recently, he wanted me to clarify something I had said. He was making sure that he should take his four or five thousand dollar tax refund and pay off debt.

I was stunned. This money represented $400-$500 that could have been in his pocket every month. A survey of my friends this week revealed one who was getting back $2800 and one getting $3300 back this year.

Getting a large tax refund (over $500) means you are having too much money withheld from your check every pay period.

Many people use this as a forced saving plan and it does not make any sense. You are loaning the government YOUR money, interest free. Every $1200 in refund is an extra $100 per month you could have used to eliminate debt or invest for your future.

I 'd venture to say that most people who do get large refunds could use this money every month to ease their debt burden. This burden frequently leads to late charges and higher interest rates. Instead, they like the feeling of getting that big check in the mail and figuring out how to spend that chunk of money.

The ideal situation is to either owe or get back $100.

If you get a big tax refund then you should adjust your allowances. The more allowances you claim, the less money is withheld from your check for taxes. It generally does not matter how many allowances you claim. If the government gets it's money they really don't care how many allowances you claim.

Here is how to get it right. Take the time to complete the appropriate worksheets included on Form W-4. The worksheets will help you determine your withholding allowances based on your income, adjustments, deductions, exemptions and tax credits. The worksheets can help you figure the right amount so you don't have too little withheld.
If you need help ask your payroll administrator at work or an accountant.

Keep your money working for YOU!

*****************
Leo J. Quinn, Jr. is a financial educator from the Albany, NY area. For the last eight years he has been stunning audiences by showing them that paying off their highest interest rates debts first and/or paying extra on more than one debt is often the SLOWEST way to get rid of those debts. He has a special offer for readers of this blog at How to Own Your Paycheck Back Again!

If you've attended one of Leo Quinn's seminars, I would love to hear about it!
Tammy
WAHM Connections

Eliminate Personal Debt - Money Saving Goals

2005-07-25T15:13:00.000-04:00

Money Goals - Steps to Eliminate Personal Debt

Establish Money Saving Goals For Added Success
By Gregory Thomas

Having something tangible to strive towards can work wonders for your money-saving efforts. To those of you that have already been actively implementing money-saving tips in order to lower your monthly bills, for added inspiration, establish a meaningful goal along with a specific dollar amount.

For those of you just starting your money-saving quest, having a goal to strive towards will help keep you focused whenever you may get a feeling of quitting.

What goal should you decide on? This is a very important question that should be thought about carefully. The answer can only be found in you.

To help come to a decision, make a list of the five most important things you need or would like to have. Keep in mind not to merely dwell on the most popular, innovative contraptions hitting the market these days.

These tangibles will come and go.

A conscientious, thoughtful money-saver is looking at the bigger picture: THE FUTURE. Whether that be college tuition savings for kinds, a new home, retirement planning, travel expenses, etc...

At the same time, there may be some of you simply looking to save more money just to purchase a new entertainment center or a brand spankin' new 61" Plasma television. There's nothing wrong with that! Whatever it takes to help keep you motivated towards your overall agenda. That is the underlying purpose of a money-saving goal.

Once you have decided on a specific goal to strive for, you next need to decide what steps you'll take to work up to that goal. In other words, how are you going to achieve that $5000 savings account? Or how are you going to save $3000 for that Las Vegas trip?

A project outline is necessary to plan your agenda in order to give you a recipe for success. It helps provide you with a step-by-step guide detailing exactly what needs to be done.

Personally, I recommend tackling your agenda a week at a time. Monthly goals are a bit too long and drawn out. Weekly agendas provide you with ample time to complete a task where at the same time it's not too lengthy where you'll lose focus and forget the overall purpose.

In addition to these weekly agendas, it is vital that you track your results in some manner. In the past, I've personally made a giant chart where I could mark my savings on a monthly basis. I even created a colorful, attractive title to label my savings chart. Doing so, inspired me to continue with my efforts in order to achieve my precious goal.

This should get your mind thinking of all the possibilities open to you, and what needs to be done to further your success with saving more of that precious commodity: money.

Gregory Thomas, editor of Saving Secrets - has written hundreds of effective money-saving tips, strategies, and articles over the past 6 years. Visit their website and you'll find FREE money-saving articles, a monthly newsletter, and even a FREE Ebook download just for stopping by!

Tammy Ames
WAHM Connections - Successful Home Business to Eliminate Debt!

How To Own Your Paycheck Again ~ Stop Saving Money!

2005-07-24T14:50:00.000-04:00

Stop Saving Money!
By: Leo J Quinn Jr

No, that's not a misprint. Even though falling interest rates are good when you want to get a loan, they are bad for people with savings accounts.

In this economy your best investment, the best place to put your money is into paying off debts. Think of it as investing in your debt because that is exactly what you are doing.

If you put $1,000 into a bank savings account earning 2%, at the end of a year you will have $1,020.

If you carry a $1,000 balance on a credit card with a 19% interest rate, and you pay the minimum monthly payments, at the end of one year you will have paid $190 in interest.

If you get $1,000 in a tax refund, small inheritance or from somewhere else you now have a choice to make. You can earn 20 bucks in a savings account or save $190 by paying off that credit card. Keep in mind that your 20 bucks is taxable income so you'll be left with $15 or so after taxes.

Do you need a savings account for emergencies? That savings account may be causing those emergencies! Think about it this way...

If you are earning money in a savings account at 2% and paying anything over 2% on your debts you are sliding backwards financially and you'll never get ahead. It's basic mathematics.

If you earn 20 bucks for five years in your savings account you'll have $100. If you pay $190 in interest on your $1,000 credit card after five years you will have paid $950 in interest charges.

In other words you have wasted, lost, burned or flushed $850 by having a savings account. ($950 - $100 = $850) OUCH!

What can you do? Pay off that credit card and use that as your emergency fund. It's not the best way to do it but it's better than earning 2% and paying anything over 2%.

So, while the stock market is on it's roller coaster and the economy is challenged your best investment, bar none, is your debts! Get them paid off!

***********
Leo J. Quinn, Jr. is a financial educator from the Albany, NY area. For the last five years he has been showing people how they can get completely out of debt (including a mortgage) in under 10 years. He has been stunning audiences by showing them that paying off their highest interest rates debts first and/or paying extra on more than one debt is the SLOWEST way to get rid of those debts. He has a special offer for readers of this blog at LeoQuinn.com