In Debt Solutions

Substitute Name Brand for Generic

2009-04-02T13:58:00.001-07:00

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?

2009-03-03T12:15:00.000-08:00

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!

2009-02-27T09:08:00.000-08:00

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

2009-02-18T12:03:00.000-08:00

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

2009-02-02T14:17:00.000-08:00

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

2009-01-21T15:16:00.000-08:00

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

2008-12-31T14:56:00.000-08:00

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?

2008-12-17T08:51:00.000-08:00

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

2008-12-03T10:39:00.000-08:00

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

2008-12-01T11:31:00.000-08:00

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.

Getting the funds to get out of debt

2008-11-18T12:33:00.000-08:00

Paying off your debt is a matter of managing your finances. People can be in debt and be completely broke and some people are in debt and have the funds to pay their debt off but choose to spend it on other things. It is important to take the step to getting out of debt as soon as you can. The more debt that is accumulated the harder it will be for you to have the desire to pay it off. If you really have the drive to get out of debt you can and it will make your life easier. There are many people in debt and some feel that they are not obligated to pay their debt off or they feel that they will never get out of debt. You may be reading this and saying but I do not have funds right now to pay it off. I'm going to suggest some ways for you to make money to pay your debt off. Remember, every little bit helps.

1. Do you have hidden treasures in your home?
Some people don't realize it but they have things that people want. If you have working electronics you can try to take your items to the local pawnshop, the big ticket items are always electronics, jewelery, etc.
2. Sell your unwanted items to on Craigslist or Ebay or you can try taking them to consignment shops.
3. Sell your used Textbooks on Amazon or Barnes and Nobles, there are many other bookstores online or locally.
4. Try selling your CD's or Dvds at your local music store.
5. GPT sites are also a fast way to earn money some sites can be found on my other blog http://moneymakingnewbies.blogspot.com
6. Donate Plasma
7. Participate in Clinical studies in your area
8. Post your talents for hire on Craigslist
9. Make money online by creating your own online store, pay per post, etc, some tips can be found here http://www.squidoo.com/moneycrunchalert.
10. Pick up another part-time job
11. Recycle your soda pop cans even waterbottles
12. Garage Sales or Yard Sales

Saving Money

1. Use coupons
2. Invest in an Entertainment book at www.entertainmentbook.com

Once you have extra cash use it towards paying off your credit card that has the least balance on it, this way you won't be discouraged because you will actually see some of your debt being eliminated.

Good Luck!

You Can Do It!! (Keep track of finances)

2008-11-10T15:41:00.000-08:00

Hi Everyone:)

Today I'm going to talk to you about managing your finances. This is one of the reasons why debt starts to build up. It's easy to spend money but not so easy to manage it. One of the ways to keep track of your finances is by using an excel spreadsheet. You want to start with how much you have and deduct all the monthly bills so that you know how much you need to keep. Than you also want to deduct how much debt you owe to credit cards and for leisure activities, food, gas, miscellaneous. The easiest way to pay your bills is by doing it online because the transactions will go through right away and you will know how much you have left. It's not really a good idea to use a credit card to pay bills if you are in credit debt the best solution is to get a free prepaid card like the
AccountNow Vantage Debit MasterCard

Visa Prepaid Card

, these cards only allow you spend the amount that you have so that you don't incur overdrafts or more debt. They both offer the direct deposit where you can choose to have how much of your paycheck to deposit onto it, however there are monthly fees just like any bank card. If you have your own bank account you can also do the same but you might get overdraft fees. Prepaid cards are good because you can allocate a certain amount for your bills onto the card so that all you need to do is pay it online and than you have your remaining left over, this way it ensures you will not overspend and your bills will be paid:). My husband gave me the idea for the Excel and trust me it works, you will be able to see where your money is going and what you might need to cut back on.

How to setup your excel spreadsheet:
Make sure to title it as the monthly spending
1.Item
2.Amount Received
3.Amount Spent
4.Total
5.Notes
6.Payment Method
7.Confirmation

It should look like this:

If you owe payments on a credit card but can't make the full amount just call up the company that you owe money to and make payment arrangements, in an economy such as this they will probably be more willing to cooperate. Once you've figured out a payment plan make sure to add that onto your spreadsheet.

What is Debt?

2008-11-05T09:04:00.000-08:00

Debt, in the Merriam dictionary is defined as "A state of owing."

In order to owe someone we would need to borrow from another party which usually means monetarily. This could be student loans, car loans, mortgages and the most common one; credit cards. How do we get in debt? We get in debt when we spend or borrow more than we can pay off. It becomes detrimental when payments are being missed because every time we miss a payment we receive a mark on our credit report and a ding on our credit score.

FICO Scores-(Fair Isaac & Co. Credit scoring) Scores that are given to determine your worthiness of being responsible and paying off your bills and debt on time. How many credit cards you have and whether the balance is high, charge offs etc. In this economy credit is used for everything.

Credit scores-
700+= Excellent credit
680-699=Good
620-679=OK
580-619=On the verge of bad
500-580=Bad
499 and Below=VERY bad

Where do you fall?

You might be saying, I don't need to pay off the debt or I'll just get another credit card and transfer my balance onto there. Well my friends doing that still makes you in debt and if you don't pay off your debt your life will be miserable with harassing collection companies calling you at home and even at work, letters to court, isn't it time to start paying off the debt? Even if you don't pay off your debt, it will haunt you for life and your children's lives and your children's children's lives and well, you probably get the picture.

The first step to getting out of debt is to be determined and willing to make whatever changes need to be made. Ask yourself,"How willing am I to do what it takes to get out of debt?"

Card to build credit (Get out of debt!)

2008-10-31T08:22:00.000-07:00

Financial Problems

In today's society having credit is vital and there have been many people that were not educated or informed on the proper use of credit. I want to let you know that there is hope for you out there to rebuild your credit slowly. If you have the drive to be debt free and rebuild your credit you can do it.Credit in today's society can make or break you. It all depends on how well you can handle your finances and control your spending. People with good credit receive many benefits where as if you are on the other end of the spectrum your life can be very miserable.Having credit or good credit determines if you can get a cellphone without a deposit, finance a car, take out a mortgage or receive loans.

There are certain credit cards that promise you help to get out of debt but instead you get into more debt. These credit cards are for people that do not have that great of credit they give you a credit line but most of it is deducted because of the fees. Therefore what was once $200 in credit is now only $75. These are the worst type of cards because they have high interest rates.

AccountNow Vantage is a prepaid debit card which means you do not have a credit line but you can control your spending by depositing money onto it and using it like a debit card. The good thing about the prepaid card is that they report to all three credit bureaus which is a good way to improve or build your credit. If you are in Chexsystems you can use this card as a checking account.

Benefits of AccountNow Vantage:

100% Approval (No waiting to see if you are approved)

No Credit Check or Check Systems Verification

No overdraft fees

Safer to use with Zero Liability Coverage

Helps build credit through PRBC (A national credit reporting agency)

Friendly customer service

Direct Deposit

Accepted anywhere there's a Visa or Mastercard logo

To learn more or to apply:
AccountNow Vantage Debit MasterCard

AccountNow Vantage Debit MasterCard

What is PRBC and how can it benefit me?
PRBC will compile your bill payment information and create a Bill Payment ScoreSM(BPSSM). PRBC is a credit reporting agency just like Experian, Trans Union, and Equifax, but it is the first to give consumers a choice and an equal opportunity to show that they pay their bills on time.

Also, unlike the other national credit bureaus, PRBC does not charge consumers to view their own data, and does not sell mailing lists. PRBC makes money by selling credit reports for "permissible purposes" under the Fair Credit Reporting Act, with a consumer’s authorization.

You will be able to log-in to PRBC.com, create a user name and password so you can review your personal file, add account information at any time -- all at no cost.

Who may use the PRBC information:
Home loan associations like Freddie Mac and Fannie Mae and Citicorp Mortgage use bill payment information as part of their decision making process for home loans.

Soon, other companies including auto loan, credit card, and insurance companies may start using Bill Payment Scores to comply with the Nation's Fair Housing and Fair Lending laws.

PRBC will only release your bill payment information with your permission to authorized PRBC subscribers who have a "permissible purpose" under the FAIR Credit Reporting Act to view it.

Tips on using your prepaid card:

When applying make sure you choose the report to credit bureau option.

Document how much you have on your card and set a budget

Important: Activate AccountNow Bill Pay and add the FREE AccountNow Credit Builder service. (Follow instructions, payment reports go through PRBC)

Use the card to pay bills and enroll in automatic payments (this will help build credit)

Direct deposit options will waive the activation fee and it's more convenient because you do not have to go to a moneygram store, etc to deposit.