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!

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.

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!

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:)

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!

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.