Substitute Name Brand for Generic

Part of getting out of debt is putting money back into your pocket. You don't have to completely cut out the pleasures in your life just maybe the ones that aren't as significant. This could be buying generic ketchup instead of name brand, you will be amazed when you find out how much you can save on some generic substitutions. You can compare the ingredients and some have the same exact ingredients while some aren't comparable. This will give you more cash to put in your pocket for bills, going out, eating out etc. If you visit clothing consignment shops you can sell old good conditioned clothes and get in store credit or you can even shop there yourself. You will be surprised at the treasures you can find at your local thrift shop. Statistics show that due to the economy the rise in sales at thrift shops is growing significantly. Buying in bulk is another way to get more bang for your buck. You can buy bulk at Costco and other food stores. There are many ways to save and I'm sure you will come up with more!

Good luck!

After you have put money into your pocket you want to invest your money by putting it into a savings account or checking where it will build interest.

Benefits of Investing your Money

Some people may not realize this but investing your money is very important. This is what will help you in times of emergencies. Due to the economy more people are learning the importance of saving. When you put your money into a savings account or any type of investment account you will build interest for the time that you leave it in there. This is money that you just put away and forget about. You want to choose the account with the highest interest rate and check to see if there is a minimum deposit. Make sure to compare rates. Most people have a savings account but other people have other investments to fall back on. In emergencies you can clear your savings account right away but if you have your money invested in several than you have more backups. All it takes is opening several investment accounts and depositing several dollars if that's what you have into the accounts. Anything helps. If you invest money into a CD account (certificate of deposit) than there's usually a minimum balance that you have to maintain and you are not allowed to take any money out up to a certain time.

Interested in Raising Your Credit Score?

If you want to get a home loan, cellphone, rent an apt or get a car loan a credit score determines how eligible you are. In the previous posts we talked about credit score ratings called FICO. In today's society a credit score is very important. In this post I will be talking about ways you can improve your credit score. Yes, it is possible to increase your credit score but the important thing is once you do don't fall back into the debt trap.

Credit scores..some people love them and some people hate them. Can you guess which ones? A credit score is created from several things such as your behavior with spending and being able to pay bills on time. Your occupation and how long you've been employed. The more professional your occupation the higher your score is...messed up I know but that's how they work. Self employed gets rated a -1. Your income also determines how many points you earn and how many credit cards you have.

How to increase your credit score

1. Increase your credit limit on your credit card and keep paying off the balance.
2. Get a secured card that works just like a credit card. Make sure to treat it just as you would a credit card. The thing with a secured card is you have to put a deposit and use that as your available credit. Try to pay off the full amount that you spend, pay on time and keep depositing more and see if you can get a credit line increase.
3. Get a copy of your credit report and check to make sure everything is correct. Make sure that they match and that all wrong information is disputed. If you have a recent collection or negative on your account contact the agency to see if you can work on arranging something.
4. If you get a cellphone, auto loan, etc. Make sure to pay on time some companies report to the credit agencies. Ask if they do.
5. See if someone is willing to cosign apt or car loan for you. Most people do this to establish credit.
6. Get a higher paying job
7. Further your education and get into a professional career
8. Stop paying late and catch up on late payments



Good luck doing these things will increase your credit score!

Want to know how to get out of debt? Stop debting!

After reading Jerrold Mundis book I was enlightened when he brought out this point "The way to get out of debt is to stay out of debt." Pretty obvious right? But how come it's so hard to do? How do you do this? Well you have to tell yourself that you will not create anymore debt;meaning you will not borrow any more money. Are you one of the constant borrowers? Do you have someone that enables you which pretty much means they come to your rescue and loan you money? If so, you are debting. Debt is a habit and habits can be broken. You just have to learn self control. Try to eliminate the things which might cause you to get into more debt. Think about how you got yourself into debt the first place and than try to avoid it. If you carry your credit card with you learn self control or don't carry it with you. If you are afraid to carry cash load your money onto a prepaid credit card or a secured card. You cannot get into debt because you can only spend the amount that you have on there and it works like a debit card. Try to not get into debt for today and the next days. Jerrold Mundis says to do this just tell yourself everyday you will not incur any debt for today and only today and that you are okay, still breathing still living life. You owe creditors money not your life and they cannot harm you physically. He also says never to file for bankruptcy because you will still be miserable. You will still feel ashamed and depressed. The reason for this is because everyone knows what Bankruptcy means. Being in debt doesn't mean it's the end of your future. It's the habit of debting that needs to be broken.

Tips to avoid debting

Don't borrow money
Don't buy what you can't afford
Spend only what you have

Example could be signing up for service (cable or cellphone) and having it billed when you know you can't afford it.
Financing a car when your income doesn't cover it
Signing up for an offer when you won't be able to afford it monthly

As you can see you can get into debt many ways. If you really want to stop debting start using cash and spending only what you have.

Good luck!

How to Get Out of Debt Stay Out of Debt & Live Prosperously

This book is rated 4 1/2 Stars and many people are saying it has really helped them get out of debt and live prosperously. I first stumbled upon this book when I was at my local library and when I started reading I was hooked. The author Jerrold Mundis has a way with words. Normally with books like these the author is scolding you for being irresponsible. That's what I like about this book he makes you accountable but in a nice way. There are also examples of people that were $240,000 in debt but with the techniques they have taken back their life. Pretty much the book is saying no matter how much debt you have you can get out. It is very inspirational and the author really connects with you to get you motivated. I checked the reviews and there are testimonials of real life people; just like me and you that have been able to change their life. I am not completely done with it but was just so intrigued and wanted to share.He talks about putting your bills in a box for 30 days and also how to really keep track of your spending which also allows you to see areas in your life you may need to improve. I'll be buying it just to refer back to it. If you want to read more you can try to find it at your local library or order it online or a bookstore.

Cutting Back

In the previous posts I had talked about how the best way to get out of debt was managing money to keep more in your pocket. Today I am going to talk about ways to do this. There are things that may seem like a little but can save you a lot if you cut back.

1. Are you an avid coffee drinker? Instead of spending 2-5 bucks on coffee invest in a nice coffee maker. You will avoid the lines and it's more convenient.
2. Are you one of those people that use many electronics at once? Such as do you have the tv on and your computer or lights? Cut back on your energy usage and will start to see your electric bill decrease.
3. Are you a bookworm? Do you buy books? Why not try checking out your local library to see if it's available? or you can even search for a cheaper but used one on ebay or amazon.
4. Instead of eating out all the time buy in bulk so you can prepare foods at home. Buying in bulk saves money in the long run and you don't have to keep making trips to the store which will save gas.
5. Invest in an entertainment book. My husband and I love this book and buy it every year. You can save on just about everything, restaurants, movies, shopping, car repairs, attractions, dry cleaning etc. The book has already paid for itself:)

Special promotion
35% Off the 2009 Entertainment Book and Free shipping!


6. Shop for deals
7. Clip coupons
8. Look for promotions.

Good luck!

Keeping up to date/ Organization

Paying your bills on time is a very important part of determining your credit. The more you pay your bills on time the better your credit is. If you are someone that has a hard time with keeping billing dates in mind one way to make sure your bills are paid is by using a personal calendar or if you on the internet a lot you can sign up for g-mail and create a calendar. In g-mail when you set up a calendar you can be reminded by e-mails and alerts. If you are glued to your cellphone you can always add in notes a few days before your bill is due and the day that your bill is due so you can make sure to come up with enough money to cover all your bills. I find both methods are very useful. When paying bills you can categorize which ones are due in the beginning of the month and than the ones that are due in the middle and end. Staying organized by using a filing cabinet or folder for each company and keeping it in a safe place also helps. I am a fan of stamps and actually get a kick out of stamping my bills. You can find stamps at walmart maybe even home depot mine says PAID, RECEIVED and PAST DUE. It is always a good feeling to stamp PAID on each envelope:) Doing this will reduce stress and give you a peace of mind:)

Key to Get Out of Debt

The key to getting out of debt is having money left over after paying what you owe. This can be done by saving, budgeting and being frugal with your finances. There are many ways to save money such as: rebates, coupons, discounts. One thing I would recommend would be the Entertainment Book the price is usually $25-$30 but the book pays for itself right away. You can get coupons for fast food joints where you buy one meal and get one free. I just purchased mine for 2009 and through a program where I earn cash back and points the total for my book ended up being only $10.00 with free shipping:). The Entertainment book also has discounts on auto services, hotels, restaurants, movies, etc. I would say it's been well worth the money.

Coupons- If you search online you can find coupons for almost anything. You can also find it in your local newspaper, I prefer to use the newspaper. There are many different programs online where you can print coupons and get points or money for it. Some of these programs are: Quickrewards, Coolsavings and Eversave.

Cash back programs- These are good programs where you spend and earn, there are participating merchants that will give you points or cash back for using the program to purchase from them. For instance, at Upside if you use your card you can get a certain amount of points for each dollar spent. Once you reach 1,000 points you get $10.00 cash back. Mypoints is the same and you can really save there. You get points and can redeem them for nice gift cards.

Rebates- Many companies offer rebate programs, especially cellphone companies.What you want to do is always check to see if the product or service you are interested in buying offers rebates.

Good luck and Happy New Year!