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!

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!

What's Your New Years Resolution?

Is your New Years Resolution to get out of debt? If so, just start with the steps listed in the previous posts until you can learn how to really manage your money. You want to get a head start on paying off your debt and making sure to keep all receipts and documentation. It may be difficult at first but once you get into a daily routine of saving little by little you will be able to save not only for your bills but for emergencies and extra stuff that is important.

How to handle debt collectors-

Debt collectors can sometimes be mean and cross over the line. Know what your rights (Fair Debt Collection Practices Act) are so that you don't fall victim to them.

-You have 30 days to validate your debt by sending a debt validation letter, remember to get a mail receipt so that you know they have received it.
-They must respond to your debt validation letter, request everything in writing.
-Debt collectors cannot call and threaten family, friends or neighbors
-They cannot garnish your wages unless they get a judgment against you in court
-They cannot call your place of employment if you have requested it in writing and said that your boss does not allow collection calls.
-They can only call between 8:00AM-9:00PM
-If you request in writing for them to not contact you and you get a mail receipt they cannot contact you.
-They must be confidential about their reason for contacting you
-They cannot threaten to harm, threaten or harass you (record all calls)


Sample of debt validation letter:Created by Laura
Your Name
Your Address

Name of CA
Address of CA
Date:

Re: Your Account No:

Dear Sir/Madam,
I checked a copy of my credit report and realized that there was a collection reported from your agency on my credit report, which I was not notified about. I do not reject to provide with the debt amount. However this a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and a validation is demanded. This is asking for proof regarding the debt that I owe and verifying it.
I am requesting you to stop all collection activities including reporting this information on my credit report. I am sure that you are aware of the fact that non-compliance with this request will end up in legal obligations.
Please dispatch copies of the following with your reply:

1. The agreement which authorizes you to collect debt on the assumed debt.
2. The signed agreement from the debtor confirming to pay the debt
3. The documents regarding the payments made on this account and validation of the amount.
With regards,

Your Signature
Your Name


To read more
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

Debt collectors are doing this because they know that people do not know their rights. If a debt collector breaks these rules and you have proof you can probably take legal action.

Is your New Years Resolution to get out of debt? If so, just start with the steps listed in the previous posts until you can learn how to really manage your money. You want to get a head start on paying off your debt and making sure to keep all receipts and documentation. It may be difficult at first but once you get into a daily routine of saving little by little you will be able to save not only for your bills but for emergencies and extra stuff that is important.

How to handle debt collectors-

Debt collectors can sometimes be mean and cross over the line. Know what your rights (Fair Debt Collection Practices Act) are so that you don't fall victim to them.

-You have 30 days to validate your debt by sending a debt validation letter, remember to get a mail receipt so that you know they have received it.
-They must respond to your debt validation letter, request everything in writing.
-Debt collectors cannot call and threaten family, friends or neighbors
-They cannot garnish your wages unless they get a judgment against you in court
-They cannot call your place of employment if you have requested it in writing and said that your boss does not allow collection calls.
-They can only call between 8:00AM-9:00PM
-If you request in writing for them to not contact you and you get a mail receipt they cannot contact you.
-They must be confidential about their reason for contacting you
-They cannot threaten to harm, threaten or harass you (record all calls)


Sample of debt validation letter:Created by Laura
Your Name
Your Address

Name of CA
Address of CA
Date:

Re: Your Account No:

Dear Sir/Madam,
I checked a copy of my credit report and realized that there was a collection reported from your agency on my credit report, which I was not notified about. I do not reject to provide with the debt amount. However this a notice sent pursuant to the Fair Debt Collection Practices Act, 15 USC 1692g Sec. 809 (b) that your claim is disputed and a validation is demanded. This is asking for proof regarding the debt that I owe and verifying it.
I am requesting you to stop all collection activities including reporting this information on my credit report. I am sure that you are aware of the fact that non-compliance with this request will end up in legal obligations.
Please dispatch copies of the following with your reply:

1. The agreement which authorizes you to collect debt on the assumed debt.
2. The signed agreement from the debtor confirming to pay the debt
3. The documents regarding the payments made on this account and validation of the amount.
With regards,

Your Signature
Your Name


To read more
http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

Debt collectors are doing this because they know that people do not know their rights. If a debt collector breaks these rules and you have proof you can probably take legal action.

Monitoring your Credit Score

It is important to make sure that everything on your credit report is up to date. By law the government allows us to obtain a free credit report once a year sometimes maybe twice depending on the state. When viewing your credit report you will be able to see how many negative accounts you have, how many you have open, type of account, your personal information, your payment history, charge offs, collections, etc. You want to make sure to dispute anything that isn't right so that your credit scores and report are up to date, you might also want to get your credit score to see where you fall in the hierarchy. Most of the time you have to pay for your credit score and these companies offer free trials so if you do not want to keep the service you want to make sure to cancel by the date when your free trial ends. Once you view your score and report you can see what you might need to work on and which accounts are worth saving. For instance, you have an account that's showing past due than you can start paying on that so that you can build your credit history back up. Remember a credit score is what determines your credit worthiness and is used for checking employment, auto loans, applying for home loans, cell phone, credit card, pretty much just about anything. If you can bring your score up to a higher range on the hierarchy you will be more likely to have willing lenders.

Good luck!

Where to review your reports

Annualcreditreport.com- You will have to make a purchase for your credit score but you are allowed your one free credit report access to all 3 agencies.
Equifax- Access to all 3 credit reporting agencies and your credit score, also includes monitoring so you are notified when your score changes, $14.95 per month.
Free Trial
Consumer Direct- 5 day free trial, Offers access to 4 credit scores,credit score, auto score, insurance score and employment score. If you don't cancel the trial you will be charged $29.95 a month.
Freecreditreport360- Access to all 3 credit reporting agencies and your score, 7-day free trial your card will be charged 1.00 but if you cancel it will be refunded. Remember to cancel by the day the trial period ends so you won't be charged. You will be charged $29.95 a month and $1.00 for your savings club a month.

It is important to make sure that everything on your credit report is up to date. By law the government allows us to obtain a free credit report once a year sometimes maybe twice depending on the state. When viewing your credit report you will be able to see how many negative accounts you have, how many you have open, type of account, your personal information, your payment history, charge offs, collections, etc. You want to make sure to dispute anything that isn't right so that your credit scores and report are up to date, you might also want to get your credit score to see where you fall in the hierarchy. Most of the time you have to pay for your credit score and these companies offer free trials so if you do not want to keep the service you want to make sure to cancel by the date when your free trial ends. Once you view your score and report you can see what you might need to work on and which accounts are worth saving. For instance, you have an account that's showing past due than you can start paying on that so that you can build your credit history back up. Remember a credit score is what determines your credit worthiness and is used for checking employment, auto loans, applying for home loans, cell phone, credit card, pretty much just about anything. If you can bring your score up to a higher range on the hierarchy you will be more likely to have willing lenders.

Good luck!

Where to review your reports

Annualcreditreport.com- You will have to make a purchase for your credit score but you are allowed your one free credit report access to all 3 agencies.
Equifax- Access to all 3 credit reporting agencies and your credit score, also includes monitoring so you are notified when your score changes, $14.95 per month.
Free Trial
Consumer Direct- 5 day free trial, Offers access to 4 credit scores,credit score, auto score, insurance score and employment score. If you don't cancel the trial you will be charged $29.95 a month.
Freecreditreport360- Access to all 3 credit reporting agencies and your score, 7-day free trial your card will be charged 1.00 but if you cancel it will be refunded. Remember to cancel by the day the trial period ends so you won't be charged. You will be charged $29.95 a month and $1.00 for your savings club a month.

Get on the Road to Debt Management

I'm going to talk to you today about how to make sure your bills are paid. There are several financial management programs online some are free and some you have to pay. There is also the excel spreadsheet that was mentioned in one of the previous posts.

Free:
- Quicken Online Edition – Free!
-Mint


This is a great way to keep track of your spending and all of your bills which is a major step in getting out of debt.

Set Priorities
1.If you owe money to a collection company for a bill that isn't recurring such as a final phone bill etc, make sure to work on paying those off. You can probably contact the company and arrange payment plans. This is a quick way to eliminate one debt and see results.
2.Organize bills and debt to what needs to be paid in the beginning of the month to what needs to be paid at the end. You can allocate your paycheck to pay all your bills at once or 1 check for the beginning payments in the month and the other check for your final bill payments (mid month to end of the month) bills. In my opinion, paying your bills off with the first check is much easier but this all depends on how much money you will need until your next paycheck. As stated before it is all a matter of budgeting.
3. If you have extra money start a fund for emergencies or savings.

Allocating your money
1. Bills
2. Food
3. Gas
4. Leisure
5. Savings
6. Emergencies
7. College fund (if you have children)
8. Debt owed

If you want to pay someone to help manage finances you can always hire a financial planner.

I'm going to talk to you today about how to make sure your bills are paid. There are several financial management programs online some are free and some you have to pay. There is also the excel spreadsheet that was mentioned in one of the previous posts.

Free:
- Quicken Online Edition – Free!
-Mint


This is a great way to keep track of your spending and all of your bills which is a major step in getting out of debt.

Set Priorities
1.If you owe money to a collection company for a bill that isn't recurring such as a final phone bill etc, make sure to work on paying those off. You can probably contact the company and arrange payment plans. This is a quick way to eliminate one debt and see results.
2.Organize bills and debt to what needs to be paid in the beginning of the month to what needs to be paid at the end. You can allocate your paycheck to pay all your bills at once or 1 check for the beginning payments in the month and the other check for your final bill payments (mid month to end of the month) bills. In my opinion, paying your bills off with the first check is much easier but this all depends on how much money you will need until your next paycheck. As stated before it is all a matter of budgeting.
3. If you have extra money start a fund for emergencies or savings.

Allocating your money
1. Bills
2. Food
3. Gas
4. Leisure
5. Savings
6. Emergencies
7. College fund (if you have children)
8. Debt owed

If you want to pay someone to help manage finances you can always hire a financial planner.