LookingForClues - Article

  Eliminate Credit Card Debt

Do you have Credit Card Debt?  Many people owe something on their cards and would love to eliminate their credit card debt.  We've all seen the ads on TV and the internet for credit repair or counseling companies, but many charge high fees and may not help as much as they say they will.  It is wise to do your own research and design a plan to eliminate credit card debt that will work for you. 

This web page is a great place to learn more about Eliminating Credit Card Debt.  Further down on this page, we present an article called, "Beat the Credit Card Blues."  The article explains how one woman was able to eliminate a fairly large credit card debt in a short period of time.  Read the article and learn the steps she took to eliminate her credit card debt. 

After you read our article, follow the Related Links we provide to other informative and interesting web sites about Eliminating Credit Card Debt. Explore the sites we've linked to and discover how to get low interest credit cards and other types of loans.  Buy a few of the Books we recommend below, to learn more about Eliminating Credit Card Debt.  Credit and money matters aren't always taught in school and many people learn lessons the hard way.  Use the resources we present here to get out of debt or to keep from getting in debt in the first place! 

 Related Links:

CreditCards.com, Eliminate Credit Card Debt
An article with a 5-step plan to get rid of Credit Card debt.  Links to 3 related articles and sidebar links that can help you to find lower rate credit cards. 

About.com, Eliminate Credit Card Debt
Another debt elimination plan.  Many links to related articles.

Motley Fool, Get Out Of Debt
This is a portal page on getting out of debt, written by these popular Investment advisors.  Lots of links! 

Bankrate.com, Bogus Debt Elimination Promises 
A cautionary article about all the scams and high-fee companies offering to help with debt reduction or elimination.  Links to related articles.  Bankrate.com is a great site for all kinds of FREE financial information, explore the site!

HowStuffWorks, Credit Cards
A fascinating 22-part article that will tell you everything about credit cards.  There is a page on Getting Rid of Debt. 

Federal Trade Commission
Search results on this U.S. government site for the words "eliminate credit card debt". 

 Read These Books:
Is it really possible to live without credit card debt, bill collectors, whopping interest payments, or anxiety about retirement? Yes it is, and Jean Chatzky, one of America's most beloved money experts, can teach you how to make that dream a reality.
 
Millions of Americans watch Chatzky on NBC's Today show, and millions more read her articles in magazines like Money, Time, and USA Weekend. Unlike some financial gurus, she offers straight talk about the problems real people face in the real world. Chatzky proves that anyone, no matter how debt-ridden or how low on income, can find an extra $10 a day to knock out their debt and build a bright, secure future. It might be as simple as spending less on your morning coffee or as drastic as trading in your SUV for a more practical car. You'll also learn how to track your spending, consolidate your debts, force credit card companies to give you their best rates, and plan ahead for the inevitable surprise expenses that crop up from time to time.
The Money Book for the Young, Fabulous & Broke is financial expert Suze Orman's answer to a generation's cry for help. They're called "Generation Debt" and "Generation Broke" by the media - people in their twenties and thirties who graduate college with a mountain of student loan debt and are stuck with one of the weakest job markets in recent history. The goals of their parents' generation - buy a house, support a family, send kids to college, retire in style - seem absurdly, depressingly out of reach. They live off their credit cards, may or may not have health insurance, and come up so far short at the end of the month that the idea of saving money is a joke. This generation has it tough, without a doubt, but they're also painfully aware of the urgent need to take matters into their own hands.
 
The Money Book was written to address the specific financial reality that faces young people today and offers a set of real, not impossible solutions to the problems at hand and the problems ahead. Concisely, pragmatically, and without a whiff of condescension, Suze Orman tells her young, fabulous & broke readers precisely what actions to take and why. Throughout these pages, there are icons that direct readers to a special YF&B domain on Suze's website that offers more specialized information, forms, and interactive tools that further customize the information in the book. Her advice at times bucks conventional wisdom (did she just say use your credit card?) and may even seem counter-intuitive (pay into a retirement fund even though your credit card debt is killing you?), but it's her honesty, understanding, and uncanny ability to anticipate the needs of her readers that has made her the most trusted financial expert of her day.
Everyone wants to slash his or her debt, save more money, and become financially secure. Regardless of your situation, you can get on the road to financial freedom -- and you can do it yourself in the next 30 days! You can be free from financial worries, rest at night knowing your bills are paid, and have peace of mind when it comes to money matters. It all starts by eliminating excessive debt, and using time-tested strategies to save your hard-earned cash.
 
Zero Debt also helps you put a financial fortress around yourself -- offering tips on budgeting, the importance of having insurance, low-cost methods for creating an updated will, creative ways to instantly put dollars in your pocket, and more. If you want to be debt-free and achieve financial freedom, you need an action plan. This book is your step-by-step plan. It's simple. It's easy to understand. And it works. Zero Debt is the one book you need to fix your finances once and for all!
Practical strategies for eliminating debt and achieving financial freedom. Each year, thousands of individuals and families fall deeper into debt. Without a practical game plan, this dilemma will continue to grow. Devised alongside his current seminar series, John Fuhrman's The Credit Diet offers readers a simple and, most importantly, effective way to eliminate debt from their lives. Comprised of five informative sections, this invaluable resource guides readers through a cutting edge yet commonsense process that will put them on the road to financial recovery. Fuhrman takes the reader by the hand, using real examples and personal experience to show them how to create, manage, and maintain a debt-relief plan and get their financial future on solid ground. This book illustrates a totally different method of debt recovery by utilizing mental, as well as physical, techniques that change how one approaches money. Readers will have enough information to develop their own specific plan of attack to assure victory over the battle of bulging bills.
 
John Fuhrman (Manchester, NH) has reached more than 1,000,000 people over the last five years. His clients include Prudential, Bank Boston, Amway, and the nearly 400,000 independent business owners who have used his materials to help their businesses grow successfully. Fuhrman has also appeared in such publications as Men's Health, Selling magazine, and Sales Mastermind.

Enjoy our exclusive Feature Article:

Beat the Credit Card Blues

by Shaunna Privratsky   2/21/06

If you are like most people, you could eliminate your credit card balances within a year, and be totally out of debt in five. The first step is to make it a priority. Why should you? A better question would be: why throw away precious money on interest every month?

I was able to pay off about $4,000 in credit card debt in less than 18 months. Our family decided to sacrifice a little, for the big payoff of becoming debt-free. We agreed to cut out fast food eating for an entire year. We developed favorite recipes, planned weekly menus and added lots of variety. I saved time by cooking large portions and freezing leftovers on the weekends for fast, nutritious meals throughout the week.

I saved enough money on our food budget to triple the minimum payments due on our credit card bills each month. The reward was seeing how fast our debt was disappearing.

Here are the steps I took to eliminate our credit card debt.

1. List all your debts, starting with the amount with the highest interest rate. Pay this off the fastest. Then roll that payment amount into your next balance, to eliminate that debt. Some people pay the smallest amounts off first, to gain a sense of achievement. More and more debt is gone as you roll over your payments into the next account. Keep the list handy to motivate your goals.

2. A savvy step is to transfer balances to a zero interest card, or at least one with a lower interest rate. Pay close attention to any transaction fees and the period the rate is available for, usually six months. Look for very low fees, since balance transfer fees based on percentages can get quite high if you are transferring large amounts, and will increase the balance to be paid with interest.

3. Put your spending on ice. Cut up or quit using your credit card for anything but emergencies. If you put new purchases on a card with a transferred balance, you will be paying interest on them until the special balance transfer is entirely paid off. This is because most companies apply payments to the low interest transfer balance first. If you don't have available cash or a debit card, save up until you do. This also curbs over-spending and living beyond your means.

4. Pay your bills on time. It won't matter if you have a low interest rate if you miss a payment or send the check late. The company can immediately raise your rates, sometimes as high as 23.99%. They can do this if you are late with any of your bills, including the electricity or cable TV bill.

5. You can open new accounts to pay off old debt. But only do this if the transaction fees are low and the interest is less than you are paying now. Try to consolidate amounts whenever possible. Most credit card companies allow up to six balance transfers onto one account as long as you don't go over your limit.

6. Beware of the home equity loan, sometimes called a second mortgage. Your home is your biggest asset and if you take a loan out against it, you will be paying two amounts, your regular mortgage and the new loan. The interest rates are usually higher, and fluctuate with the market. If you default on either loan, you lose your house. Also, you usually have to pay "closing costs" again, which run anywhere from $3,000 to $10,000, so you have more to pay back.

7. Know when to raise the white flag. If you just can't seem to budge your debt on your own, or you are forced to continue using your credit cards, consider counseling. Be careful about choosing an agency. You can contact the National Foundation for Credit Counseling at www.nfcc.org or 1-800-388-2227 to find a reputable counselor near you. Be wary if they charge substantial fees upfront, promise that your debt will be wiped out, immediately suggest bankruptcy or have you send your payments directly to them. They could pocket the money and you will default on your payments and ruin your credit.

Contrary to society's message of "buy now, pay later," you can live debt free. You will enjoy peace of mind and more freedom to buy things on your terms, not the credit card companies' rules. Choose today to become debt free, and beat those credit card blues forever.

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