Debt Elimination Tips

A debt-free vacation

2007-07-25T06:31:00.001-07:00

Just got back from a 4-day vacation but you know what the best part is? We didn't come back home to more debt! Everything was paid for in cash. I can't tell you what a great feeling that is.

By saving up ahead of time, and choosing not to go on a shopping spree, we were able to do this relatively easily. Now if you are thinking that we could do this simply because we are rolling in the dough, well, that is just not the case, trust me.

We rented a house along with some of my other family members in a beautiful resort area. Sure it was expensive. But split three ways it was quite affordable. The other thing we did is find recreation that didn't cost extra. This included a lot of bike riding, hiking, swimming and site-seeing. Didn't cost a dime. Cheep as it gets!

My family and I relaxed and had a great time. When it was all said and done, it only cost us about $400. Because we are determined to be debt-free we saved up, set some money aside and just paid cash for everything. Not hard to do.

The reason I'm sharing this is simply to demonstrate that a debt-free vacation can be done. Anyone can do this with a little bit of planning and saving. When you come back home and know that you don't have to pay for the vacation for the next couple of years...well, that's huge.

Getting out of debt begins with not getting into more debt. Does this mean you can never go on a vacation? No way! Be creative and you will find ways to make it happen that won't mean breaking out the credit card. You can do it!

Summer finance management

2007-07-15T22:45:00.000-07:00

Well, it's that time again to start thinking about good financial management. If you've been hanging around JumpStart for very long, you know that come summer time, that's when we start saving big on the electric bill. Yep, you guessed it; we're hanging our laundry!

Our heating bill is pretty expensive during the winter months so saving on the electric bill during summer really pays during the winter months because it means we can afford to keep the house nice and toasty warm.

The key though, is that in the budget I've made up, I don't change how much I'm allocating (setting aside) for the electric bill. This way, I'll be putting more money into the "Electricity fund" each month than is really needed to pay the bill. This way, when I get the steep electric bill come winter time, it's not a problem to pay for it.

It's a pretty simple exercise but an example of sound finance management. This principle can be applied to so many different things but is especially relevant to seasonal expenses like gas or electricity.

I'd thought about putting up a photo of us hanging laundry to prove we really do this but I'm not sure that the whole world really wants to see that, let alone my wife!

As we go through summer this year, I'll post more finance management tips in addition to those that we actually use in order to manage our money. Hopefully you'll find them just as useful as we have!

Celebrate YOUR independence from debt

2007-07-04T15:02:00.000-07:00

While you may be out celebrating America's independence today (and that is a very good thing), I would like to encourage you to consider one day celebrating YOUR independence from debt. It may not be as dramatic as signing a Declaration of Independence, but it is significant just the same.

The founders of America certainly desired for everyone, the opportunity to pursue happiness, but I'm pretty sure that didn't include using the credit card and living paycheck to paycheck. Instead, they meant for us to be financially free of those burdens.

If you are feeling the weight of debt, then you are not living the "American Dream" as some call it. Instead, you are living the dream envisioned by your creditors: that you would be indebted to them for as long as possible.

Few things will provide a reason for shooting off fireworks a year from today than declaring yourself free from debt and living life independent of your debtors. Wouldn't that be worth celebrating?

We remember the sacrifices of so many to give us the freedoms we have today. My hope, is that a short while from now, you will be able to celebrate the sacrifices you made, in order to get out of debt once and for all.

Celebrate the fact that one of the freedoms we enjoy in America today is the freedom to be owing to no one and to enjoy the full fruit of our labor free from the stress and worry that accompany indebtedness. That celebration can be yours!

With that thought in mind, have a happy and very safe, Forth of July!

Credit Card Debt vs. The Mortgage

2007-07-03T22:09:00.000-07:00

Everyone knows that credit card companies can be vicious at times, but even worse, they can be mightily convincing. So much so, that some people just might be inclined to pay them before they their mortgage.

"Late payments on home equity loans climbed to a 1½-year high in the opening quarter of this year, while delinquencies on credit card bills fell, painting a mixed picture of how people are managing their debt." (http://www.msnbc.msn.com/id/19580805/)

Yes, that's backwards. The bank can take your house. The credit card company cannot. Pay the bank that holds the title to your home BEFORE you pay the credit card company.

If you you are stuck with having to choose between paying the credit card or paying your mortgage, pay your mortgage first and whatever is left over, that's what the credit card company gets.

Will they complain? Yep. Might they threaten to take your possessions or garnish your wages? Yep. Can they do either? Absolutely not. Not without a court order which can only be obtained if they sue you and win a judgment against you. Without a judgment, idle threats on the phone or by mail are just that, idle threats. Well, actually, they are not idle, they are illegal.

Don't take my word for it though. Confirm it here, and especially here (paragraph 4).

Debt is easy - Jobs hard to find

2007-06-27T06:59:00.000-07:00

I came across a news article yesterday that paints a pretty troubling picture of the job market for today's college graduates. Even with freshly stamped degrees in their hands, good jobs in their field of study are hard to find.

http://www.msnbc.msn.com/id/19358792/

While it's bad enough not being able to find work, it's also a situation ripe for producing the next generation of indebted young people. We all know just how prolific credit card companies are among today's colleges. You see the offers posted on bulletin boards all over the campus.

The problem is, many of these young kids probably got the cards so they could either survive college or enjoy some spending money, thinking they could just repay the debt once they graduated and got that great job. But here's the kicker. There may be no great job.

Sure, most can find work these days, but landing a high-paying job in a particular field of study will be pretty difficult and may take time. Meanwhile, the lack of work will only compound the already bad situation. You can see where this is going.

If you are a parent of a teen or college student, do what you can to help them understand the dire consequences of debt. The credit card companies do not care how old they are or if they are out of work.

If this describes your situation and you are struggling with finding good paying work, then there could be no better time than the present to stop using the credit cards and do what you can to get them paid off.

Either way you look at it, debt is easy and when jobs are hard to find, it's even easier. But the burden it will leave you with later on will only drive you further into a financial black hole.

Getting out of debt quickly

2007-06-23T13:05:00.000-07:00

I got to thinking about getting out of debt quickly today and a memory of running the relay as a kid came flashing back into my mind. Funny how stuff like that happens.

Anyway, I remember being told very specifically by my coach to "pace yourself" and not blast out of the "gate" too quickly or you'll burn out and won't have any energy left to finish the race. It was good advice. It worked every time.

Everyone wants to get out of debt quickly, no doubt about it. In fact, I'd venture to say that most people would like to get debt free just as quickly as they'd like to get rich, which is why a lot of people play the lottery. Both are loosing propositions though.

Like my lessons learned in running relay, careful planning and goal setting is paramount to winning. In the relay race, I had to be very careful to stay in my lane, keep a good, steady pace, know when to kick it into high gear (during the last turn) and how to properly pass the baton so as not drop it during the hand-off to the next runner.

All of this is part of the strategy of the race. Without it, you are guaranteed to loose. Getting out of debt is no different.

If debt reduction really is your goal, then the winning this goal is going to require some goals, good planning and a good pace. Sure, there'll be some sprints. Yes, you're going to give it your all. But the last thing you want to do is just bust out of the gate without knowing where your going or how you are going to get there.

That is a recipe for disaster. Trust me, I know this from experience.

Do a little bit of homework, be patient, plan. Getting out of debt is not like winning the lottery. Sure, there are some stories of some who did it in record time. Some. Not all. Certainly not the majority.

Here's an article I wrote recently that might be a good place to start if you are getting serious about being free from debt: Debt Elimination

Budgets take too much time

2007-06-22T06:18:00.000-07:00

"Budgeting just takes too much time. Besides, what's the point anyway. I already know I hardly have any money to spend after bills are paid."

I've heard it many times and used to say this myself! The ironic thing is, some budgets DO take too much time! It's crazy. There are some programs out there, paper and electronic that are so incredibly time consuming that it's no wonder someone would respond with a negative feeling about budgeting.

I recently published an article called, "Busting the budget myths." It's only available to Debt-Free Living members but I thought I'd give you an excerpt from that article this morning.

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Opening a budgeting workbook and staring at the pages and pages of "fill in the blanks" is enough to make an anyone whimper in fear. Can't blame them really, they can be downright scary.

Most budgets out there today are not so frightening, but what some of the complicated ones have done is instill the myth that making a budget and maintaining it will be just too much work to make it worth it.

The truth is, budgets, in and of themselves, do not take that much time at all. In fact, you could probably set one up in less time than it takes to eat a meal.

Commercially produced budgeting programs have worked hard to be all inclusive and this hasn't helped. In other words, they have worked to have every conceivable "feature" so as not exclude anyone or any possible situation. The result has been an overwhelmed consumer looking at a hundred different categories of where to put their money and not having a clue about where to begin. To make matters worse, these things are packed into a book with even more worksheets, calculators, tools and a ton of instructions to learn how to use it all.

By making the budget so complex, some really do take a long time to use. It's no wonder that it would seem like it would take forever to complete it.

There are some good products out there though that have kept the budget program within the boundaries of the essentials. While they don't have all the bells and whistles, they are exactly what you need in order to bust through the myth that budgets take too much time. I'll tell you what to look for in a budgeting program later on.

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Setting up a budget does not have to be overwhelming, nor does it need to take a lot of time. In the above article, I explore two other pervasive myths and give you some tips on what to look for in a good budgeting program.

If you'd like to read the rest of this article, just sign up for a Debt-Free Living membership, it's absolutely free! You'll get special access to the Member's section with more premium articles and additional content to help get you started on your way to a life free from debt.

Managing Your Money Badly

2007-06-20T21:39:00.000-07:00

There's a lot of ways to manage your money and everyone has an opinion, especially if you hit a windfall, like a lottery. Everyone thinks they've got the answer.

I read an article today by such a person. In her article, "Getting in Touch with Your Money Style," the author tells of a person who won a million-dollar lottery and her tendency to spend all of her winnings. Because this lottery winner knew her tendency, she was "in touch with her money style."

Therefore, this lottery winner decided to take equal payments of her winnings over 20 years instead of taking a single lump sum. Now on the surface that might sound smart, but actually, that was a very bad decision for 2 main reasons:

1) This individual never addresses the need to change their spending habits
2) 20 years from now, those distribution payments will be worth a lot less.

Let me explain both of these reasons.

First, by not addressing the fact that this person has a spending problem, she will now successfully spend her lottery winnings over the course of 20 years (as apposed to all at once if she had gotten a lump sum). That is managing your money badly.

What this clearly means is that just being in touch with your "money style" will do nothing to get you out of debt and build wealth. Anyone who wins a million-dollar lottery should be wealthy for life but not this person. They are too busy enjoying their short-term wealth. Too bad it won't last.

Second, taking the winnings over the course of 20 years is a windfall for the government or whoever managed the lottery. They've got a million dollars now that they get to play with...forever.

Think about it, if the entity that's holding the bag of gold invests it in just some safe mutual funds earning 10% a year, they'll earn way more than enough interest to pay out the proceeds to the winner, all the while, being able to keep the million dollar principle and do whatever they want with it. That's managing your money wisely.

To make matters worse, the spending power of those lottery payments will dwindle significantly over time. Any idea how far a $50,000 lottery payment will go after 20 years, when inflation has had a chance to creep up at 3% a year or more? Look BACK 20 years and ask yourself what you could have bought for $50,000. Any chance of getting that for the same amount now?

Managing your money doesn't have to be hard or complicated, but it does take some action on your part. Action to CHANGE your "money style," or rather, habits. Once you change your bad habits and start using your money wisely, you won't have to worry about your "style" let alone managing your money badly.

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Reference:
"Getting in Touch with Your Money Style"
http://finance.yahoo.com/expert/article/moneyhappy/34992

My Dad and his secret to success

2007-06-17T13:06:00.000-07:00

My dad may not have been perfect in everything, but one thing he did real well while I was growing up was demonstrate for me, through his own life, how to properly manage money.

But that doesn't even tell half the story. He kept our family financially secure by not spending what he did have on frivolous things. He saved. He prepared for emergencies. He took good care of what we did have and made it last a real long time. When times were tough, he worked his tail off. Dad just did everything he could to make sure that we never lost a house to foreclosure, always had food on the table, and could afford at least one birthday present every year. He was a proud but humble man and willing to work jobs that others would snub in order to take care of us.

Those may seem like small things, but to a kid growing up and seeing turmoil and instability all around him, being able to come home to this environment was incredibly welcoming.

Not surprisingly, I choose not to heed my father's example when I left home and of course I paid the price financially. My road to get out of debt however has been a "coming home" of sorts as I have had to change my view of things and remember what it was like to live with little. To remember my father's example and work ethic.

The one timeless principle that my dad taught me through all of this, and one that I will never forget, is that of contentment. Sure, I want "stuff" like everyone else, but the road to getting out of debt is paved with this one secret to genuine success. I've had to work real hard over a long period of time in order to pay back my creditors (yep, still at it). Contentment with what I have has been critical in providing the stability and support my own family needs in the process.

Has it been worth it? Oh man, has it ever! The peace of mind alone has made every bit of it worth the effort.

Today, my successes and particularly, what I've learned about finances and how to get out of debt are simply a tribute to the marvelous principles that my father instilled in me from day one.

Thanks Dad.

Save money on books

2007-06-14T07:05:00.000-07:00

You've probably been to Amazon.com to purchase a book or two, but if you are really tight for cash, here's two other places you might consider:

1) The local used bookstore, or
2) books.half.ebay.com

There's a real easy way to save on shipping costs, go local. Used bookstores in the area are a great way to save some cash on needed books. Why do you need a book? Well, maybe you are going back to school or you need to do some studying for the new position at work.

Whatever your reason, there are ways to save.

The second way you might save money on books is through books.half.ebay.com. Books can be had for real cheap here, but you need to be willing to take some risk, such as waiting a while for the book to arrive.

Don't order what you need the week you need it. It probably won't make it to you in time.

These are great suggestions if you need to buy a book, particularly an expensive textbook, but you might also try the library. Of course, if someone else reserves it while you are using it, your out of luck since you'll need to return it. If you need it for school, you really should buy it.

Here's a good rule of thumb for knowing if you should buy used or not: if you can get the book, used, for less than the amount you'd get by selling it back to the school (book return) after your class, then go for it.

Just one caveat. Some text books come with special web access features that require a new book. If you need those features for class, you might just need to bite the bullet and buy new.

There are other ways to save money on books for sure, these are just a couple. I recently had to purchase a text book that cost over $100 so I'm always on the lookout for ways to save on these bad boys. A book just shouldn't cost that much!

Are Gas Price Increases Behind Us?

2007-06-09T09:04:00.000-07:00

The question lingering on a lot of peoples minds these days, at least in the U.S. is, "are gas prices going to stabilize or will we see them go up some more?"

That's a tough one to answer but kiplinger.com published a story yesterday that might shed some light on it. The bottom line? The steep price increases are coming to a close, but expect more run-ups on prices each year around this same time period.

"Sharp jumps at the pump will be annual spring events for a number of years. The traditional pattern for motor fuels, in which spring brought fairly gradual price advances ahead of the peak summer driving season, is fast becoming a pleasant memory in relative terms."

What does this mean for you? Planning!

Don't let spring-time roll around next year to see rapidly rising gas prices catch you by surprise. So how do you plan for it?

Simple, start saving a little bit each month right now. For example, each month, I set aside some money to pay my gas card in full when the bill comes due. The amount I set aside though is usually more than I need to pay the bill I get.

The reason I do this is so that on the months we take a vacation (driving) or gas prices jump up, I'm not caught with a higher gas bill that I'm unable to pay. Because I've been setting aside a little more than I need, when the time comes, I can still pay the bill in full.

Moral of the story? Now that you know gas prices are going to increase again next spring, it's no longer going to be a surprise, so start putting a little money away each month in preparation...starting today!

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Read the entire Kiplinger article here:
http://www.kiplinger.com/businessresource/forecast/archive/gas_price_runups_070608.html

Credit Card Offer - Should I Take It?

2007-06-06T06:35:00.000-07:00

Of course, the answer to the question asked in the title is obviously "no", but the ad I received yesterday sure seemed compelling at first. It started off like this:

"It is with great pleasure that we extend to you an invitation to experience the benefits of the ****** Card"

Oooo, ahhhh. I poke fun at it, but seriously, doesn't it sound nice. I'm "invited" after all! But it gets better:

"With the addition of the *** Rewards *** Card, enjoy: The *** Rewards program - Automatically earn one point for virtually every dollar you spend on your *** Card, and enjoy rewards from hundreds of retailers, airlines and hotels worldwide."

Of course, the great fallacy is that, in order to enjoy these so-called "rewards" (which are basically just really small discounts), you have to spend, spend, spend. The more you spend, the more you save right?

Well, to genuinely save money, you need to be able to spend less on things that you purchase regularly. However, that is not really the aim here.

This sole intent of this credit card offer, is to entice you to spend more than you normally would (because you have some "points") and to do so using their card.

Of course, doing this means that you will be spending more money than you are used to, which leaves less money for real saving and debt reduction, which of course leads you further into the deep hole of debt and farther away from financial freedom.

Listen, there is nothing special about a credit card offer, gold, platinum or otherwise. They are a dime a dozen and they do not think you are special. They just want your hard earned money, period.

Don't give it to them.

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If you are sick and tired of the credit card jungle and are ready to get free from debt forever, then why keep putting it off? Get on the road to freedom right now with a debt solution that just works: http://www.debt-solution.jumpstarttofreedom.com.

Saving money, on the Government's dime!

2007-06-04T08:17:00.000-07:00

If you've never heard of a "Flexible Spending Account" or FSA, it's something you need to ask your company about, if you live in the United States.

Quite simply, what this plan does is allow you to spend money on medical and related expenses with money that is deducted from your paycheck, pre-tax.

If you make $1,000 and you have $100 taken out for your FSA account, then you will only be taxed on $900.

This impacts you significantly in two ways;

1) It puts more money in your pocket to pay for medical and other health-related expenses because that $100 (in the example above) did not have any tax taken out of it. That's more money for you!

2) It reduces your taxable income, which means you get taxed less, which means more money for you!

What can you spend this money on? From doctor visits to braces to many over-the-counter medications, the list is long.

There is a catch though. You have to make an election at the beginning of the year as to how much money you want withdrawn over the course of the year. If you don't end up using it, you loose it.

Now I've been using an FSA account for years and have never lost more than a buck or two. It's very easy to use it up, especially if you plan ahead. If you know you're going to need a doctor visit or two, some medications for colds, some dental work, etc., then you're all set.

If you're employer doesn't sponsor an FSA account, ask them to do so. All it costs them is a very small maintenance fee for each employee that participates since it's completely maintained by a third-party administrator. Your Benefits person will definitely know about it.

Here's a few links for more information if you'd like to read more about it:

https://www.fsafeds.com/fsafeds/index.asp
http://en.wikipedia.org/wiki/Flexible_spending_account

Getting out of debt but hampered by gas prices

2007-06-01T11:43:00.000-07:00

If you live in the U.S. you well know how tough it has been to pay that gas bill. In fact, it's amazing to me that the economy is doing so well.

Surprisingly, many people are getting suckered into buying a new car!
[http://msnbc.msn.com/id/18864234/]

But not just any new car, a hybrid or other vehicle that gets really good gas mileage. Don't fall for this. It could take a decade for that new car to pay for itself with the gas savings.

Buying a new car is either spending money or going into debt and NEITHER will help you get OUT of debt.

For those of us that actually do want to get out of debt, the increase in gas prices has certainly put a damper on things. This is where flexibility is key.

If you feel like throwing in the towel and not continuing your efforts to get out of debt, don't do give up! Instead, adjust your budget accordingly so that you're not so stretched to the limit every month.

This means that it may be time to 1) cut expenses, or 2) increase your income.

If getting out of debt really is a priority for you, then make it a priority over the other things you're spending money (besides the absolute essentials of course).

If you've cut everything and there's absolutely no more wiggle room, then it's time to look for ways to increase your income. Could be a new job, maybe a second job, or maybe doing something from home. Maybe watching other people's kids or making money online, you need to find a way to get more income coming in.

Whatever you end up doing, be creative, be flexible, change your lifestyle, but do what it takes to stay on the road to getting out of debt.

Don't give up!

p.s.
If you think prices are high in the U.S., check this out!
[http://money.cnn.com/pf/features/lists/global_gasprices/]

Free Debt Help - Pt.2

2007-05-17T20:36:00.000-07:00

In my last entry, I promised I'd share with you some other resources for finding debt help besides just friends and family

Library

If you don't frequent your local library then this is a habit you definitely need to develop. Not only is it a rich resource of information, but all of that info is free! But don't stop short at just browsing through the literature: ask the librarian for help. They will often offer suggestions you never considered before.

If you live in a country or area that doesn't have a library system nearby, then the Internet will be your library. Use your favorite search engine and have at it. Read, read, read. A couple hours of Internet browsing can answer a lot of questions.

Employee Assistance Program (EAP)

Many workplaces today have an EAP program as part of their "Work Life Balance" initiative. This program provides many free resource to employees, including help with debt problems. If your company provides something like this, start asking about it. After all, they are paying for it!

Non-profit organizations

There are a lot of organizations that are funded by government, corporations, or other institutions who's sole purpose is to be a resource to you. Take advantage of them. If you live in the USA and are a minority or single parent, there is almost certainly help nearby.

If you aren't sure what's out there, or where to find them try doing a search on the Internet using the following; "nonprofit debt help [name of city] [name of state]"

For example, you might enter, "nonprofit debt help Seattle Washington" or maybe "nonprofit debt help Southern New England".

You might be quite surprise at what pops up.

Chamber of Commerce (USA)

If you come up empty with your Internet searches but you live in the United States, try the local Chamber of Commerce. Ask them for a list of nonprofit groups in your area, or more specifically, ones that provide help with debt problems.

More often than not, the Chamber has got a list somewhere of these organizations which will make them must easier to find.

If you live outside the U.S., chances are that there is an organization, government or not, that maintains a list of nonprofit organizations. It just might take a little more effort to find.

Local Churches

Lastly, you really shouldn't rule out your local church. Most institutions, regardless of their beliefs, have some kind of program in place to help give people the knowledge and skills they need to manage debt.

From classes to seminars, a lot of these things are provided for free and in most instances, you don't need to be a "member." Usually, the bigger the church, the bigger the program. Hey, it's a free resource and the people there are usually pretty genuine about doing what they can to help out so it's worth a try.

Conclusion

After you've exhausted all of these resources, you should have a real good idea of what to do next. There really is a lot of help out there just waiting for you to ask about it. All it takes is a little effort on your part to find it sometimes, that that's effort well spent.

Free Debt Help

2007-05-11T06:18:00.000-07:00

When you're struggling with debt, the last thing you want to do is have to spend even more money to get the help you want. Shoot, that's why you're reading this blog! What could be better than free debt help?

While the Internet is full of great information, there are other sources of free help as well.

The one source of debt help I want to discuss today is that of friends and family. Most of us, though not all of us, do have a wide source of family and friends that we can address our concerns with. The problem, however, is that we too often let our pride or embarrassment about our situation, get in the way of receiving the help we need.

Getting out of debt is hard. Asking for help can be harder. But there are some good reasons for going to family and friends before anywhere else.

First, they almost always have your best interest in mind. Most companies, while they might have really good customer service, are primarily focused on one thing, their bottom line (i.e. how much money they are going to make off you). Those we are close to on the other hand, hopefully don't have the same motivation. Instead, they really care about you and would love to see you get out of debt.

Second, asking someone you know for advice about what to do, where to go, or what to read is THE best way to find a quality product or service. Consider how many times you visited a particular restaurant or read a book because someone suggested it. Was it worth it?

Most of the time, getting referred to something from a friend or family member is quite reliable and a whole lot better than going to the phone directory. Let's just say your odds are much greater that wherever you get referred to will be a good place to go.

If you're just looking to borrow money or something though, friends and family are NOT the source you want to tap into. They are a great resource for tips, ideas, suggestions, business referrals and general knowledge about "what to do," but they are a terrible resource to ask for money.

One of the biggest problem areas in families is money and it can very easily destroy relationships, particularly if there's an expectation of repayment. If a friend wants to give you money as a gift to help with your debt situation, unconditionally with no expectation of repayment, then by all means accept it. But I would never suggest asking for money unless your situation was truly dire.

Instead of asking for cash to help with your debt problem, consider asking for advice on where to find financial help. There are organizations, non-profit ones, that can provide assistance so asking around is a great way to find a reliable one you can trust.

The bottom line though, is that when it comes to free debt help, sometimes we just need to swallow our pride, accept the fact that we need help, and start asking around for it. Most of the time, you'll get great information and suggestions. Better yet, you'll be getting advice from someone who has your best interest in mind.

For those of you who just don't have anyone to turn to, hang in there. Don't give up. There are some options. In my next blog entry, I'll provide some other suggestions about where you might find free debt help.

Consumer debt - a world-wide trend

2007-05-03T09:40:00.000-07:00

It almost doesn't matter where you live in the world these days. The long arms of the credit card companies are stretching far into places that traditionally have never known what it means to be in debt.

Consider this headline in an article published today at SmartMoney.com: MasterCard Gains on Global Spread of Credits Cards

"This is global momentum," Chief Financial Officer Chris McWilton said on a Wednesday conference call. "We make a lot of money when people hop on an airplane and cross a border."

You have to understand that these guys don't really care about where you live or how you buy stuff, they only want to make sure that you learn how to use their credit card, forget how to use cash and never look back.

Don't believe me?

"A lot of us who live here in the United States get accustomed to the fact that everyone has credit cards and uses them on a regular basis," CFO McWilton said. "In a lot of the rest of the world cash is still the dominant form of payment. We are seeing exceptional growth overseas."

There's a very good reason why "cash is still the dominate form of payment" in much of the world - because it's smart!

Do not be lured by the lust for the western way of living, trust me, it's so not worth it, at least when it comes to becoming indebted to a company like the one mentioned above. Next to gold, cash is always, and will aways be king.

The rest of this article is a real eye opener and I highly recommend it. Check it out here:

http://www.smartmoney.com/onedaywonder/index.cfm?story=20070502

Credit Card Debt Negotiation - SCAM Alert!

2007-04-27T12:09:00.000-07:00

If someone were to tell you that with their service, they could reduce your debt by half in 30 days and significantly reduce the interest rates on your credit cards, all for a small fee, would you do it?

Heck, why not! Even I would be tempted by an offer like that to instantly reduce credit card debt.

But here's the rub; there are hundreds of scams out there just begging for vulnerable people like us to cough up the $500 fee in advance while we sit and wait for something (nothing) to happen.

Don't do it.

Any organization that charges a huge fee, up front, is NOT one with your best interests in mind. Period.

There is NO quick fix for reducing credit card debt so no matter how good the deal sounds, walk away, or at worst, do some research.

Getting out of debt really is not as difficult as some people might lead you to believe and looking for a "get out fast" solution will only open the door to theives. In fact, you can probably do it on your own with a few simple tools. Here's a debt solution that I put together for example that shows you exactly how to do this.

If you are struggling to keep your head above water financially and the pressures are unbearable, then counseling is definitely the way to go though. It may sound funny to consider a financial counselor for your debt situation, but trust me, I myself have used a counselor in the past and it's well worth the effort.

Wiping away debt quickly is rarely ever a reality unless you're talking bankruptcy so coming to grips with this fact is key. The next key that you must realize is YES, you can be debt free. Just not over night.

Be smart, think twice, do your research and you'll be well armed to prevent yourself from falling into the dangerous trap of a scam and instead, ready to take advantage of the right solution that comes along.

Check out this related story over at MSNBC.com:
http://www.msnbc.msn.com/id/18155301/

Finding Help With Debt Problems

2007-04-17T07:03:00.000-07:00

Finding the help you need might seem like a difficult task but honestly, I think we make it way more complicated than it need to be. For most of us, help is right around the corner.

The other problem we run into is, we never turn the corner, we just stand there waiting for something to happen. But of course, nothing does.

To overcome these two barriers to finding help with your debt problems, I strongly recommend starting with those you know; your family and friends.

No, I'm not talking about borrowing money here, you're just looking for solutions to whatever predicament you might be in. Maybe you need help with transportation or you need some advice on how to deal with a nagging creditor. Perhaps it's just a referral to a good credit counselor or even a lawyer.

Whatever the need, start talking to those you know. I understand it's not real comfortable doing this since it may mean you need to let them in on your situation, but what is that compared to getting the debt help you need?

If you have at least just one person in your life that you trust, go to them. If anything, they may be a terrific source of support and encouragement while you work through a difficult financial situation. The last thing you want is to go it alone.

Start with the people you know.

Don't make these mistakes!

2007-04-14T12:07:00.000-07:00

For years I tried to get out of debt and wondered why I never seemed to get anywhere. Every effort was met with failure.

Just when it seemed I was making some headway, WHAM! Some emergency comes up and I have to use the credit card to save the day.

This describes me a number of years ago and maybe it describes you as well. If you are struggling to get a grip on those monthly payments that just never seem to end, you might very well be making one of the same mistakes I did!

NO LONGER!

I've put together a very special report just for you. Own your own copy of, "The 5 Biggest Mistakes People Make With Their Money: and how you can easily avoid them," by simply subscribing to my "Debt-Free Living" email newsletter (top-right-hand corner of this page).

In this 10-page report, I discuss the five biggest blunders I've ever made (yep, even me) and what you can start doing right now to make sure you don't make the same mistakes I did.

Subscribe today and you'll instantly get a download link so you can start reading it right now!

Cheers!

Hello....you still around?

2007-04-13T07:00:00.000-07:00

Still here! Been working very hard on some exciting things lately. Here's a short list so you know I haven't just been sitting around watching the soaps. ;-)

1) Site re-design: mostly behind-the-scenes stuff but better graphics are on the way
2) Newsletter re-design: never happy with the way things are, the newsletter is getting revamped with more content, a new design and better functionality.
3) Will be releasing a brand new report titled, "The 5 Biggest Mistakes People Make With Their Money: And how you can easily avoid them." Coming soon!
4) A brand new article section will be arriving in coming months with fresh new content.

Well, that's the short list. A lot more going on of course - things are definitely alive and kicking at jumpstarttofreedom.com!

Are the cash-back incentives worth it?

2007-03-28T06:37:00.000-07:00

As credit card companies get even fancier with the incentives to drive customers, you have to wonder if these "rewards" are even worth it. I mean, what good is a 1% cash back bonus if you're paying 10% interest?

This is exactly the subject of this excellent article.

Please keep in mind that I do not recommend the above article for the purpose of getting advice on what credit card to get. It's meant for educational purposes only - to reinforce the importance of being watchful and diligent about the decisions you make.

With that said, it's a great read and I highly recommend it. Just don't go further into debt as a result please. Seriously, it's so not worth it.

Debt - Are There Rewards for The Taking?

2007-03-22T06:47:00.000-07:00

Got a credit card offer in the mail yesterday with the following at the top of the letter:

"You're invited to enjoy the rewards of a [insert card name] Platinum Card."

Wow, how special is that! I'm "invited to enjoy the rewards" for going into debt! Keep in mind, this is a real credit card offer I'm looking at while typing this. They made the word "invited" orange, not me.

Here's what the offer says:

This card is "for those who have achieved a certain level of financial success [and] demand exceptional rewards..."

While I certainly do demand exceptional rewards, I do so while financially free, not at the cost of going into debt! Further, if I'd genuinely achieved a "certain level of financial success," whatever that is, what in the world do I need this credit card for?

"Because you've earned our highest Pre-Approved status, your eligible for...benefits not always available to others..."

Yep, me and the 10 million other people that got this advertisement. I haven't "earned" a single thing, except the opportunity from this company to go into debt.

"Only [this] Card offers the Get More program...."

In this creditor's board room: "Hey, here's an idea, let's set up a program that sounds like a benefit but is really used to drive more purchases so that customers go into debt faster and deeper than with other cards, making us even MORE money in the process!"

The word "cash" and "cashback" is used so many times in this advertisement that you might begin to wonder if this credit card is just a cash machine. It's sickening.

Look at all the "benefits" you get with a credit card and ask yourself, "am I willing to take a 5% coupon for going into debt and taking on all the stress and frustration associated with it?"

Listen, the only thing you are being "invited" to in credit card offers like this one is the opportunity to rob yourself of financial freedom - to rob yourself of your hard-earned cash.

Shred these offers and keep your money. Who gives a rip about "travel benefits," "store discounts," and "150 different card designs." This stuff is meaningless if you are living a life debt-free and paying yourself instead of the credit card company.

Reward yourself by paying you instead of them. Get out of debt, stay that way and the rewards you get from THAT, will be FAR GREATER than the little trinkets associated with a silly credit card.

Don't take my word for it, just ask anyone who is debt free.

Here's my secret for being debt-free

2007-03-20T06:55:00.000-07:00

My secret for getting out of debt is really simple, but very difficult to implement. The funny thing is, anyone can do it! It's not technical at all.

It doesn't require any special software skills, doesn't matter what your income is or what you drive. My secret is completely unbiased.

My secret to get out of debt is this: I HATE DEBT!

Seriously, I hate it with a vengeance. Have you ever hated anything so much that it becomes the central point of everything you do? There's only one time I recommend this type of behavior and this is it.

So that's it, that's my secret and it's why you can be successful too.

If you get really passionate about getting out of debt, you will get out. And once you do, a world of opportunity will open up for you like no other.

But you have to hate debt in order to do it. If I can do it, you can do it!

The Payday Loan Money Pit

2007-03-18T15:36:00.001-07:00

If you've hung around this blog much at all, you probably know how I feel about "payday loans", but a prominent article on the front page of Oregon's premier newspaper, The Oregonian, has made it a central topic today: "Loans Up The Ante For Gambling Addicts."

While gambling in itself is enough to torpedo any debt reduction effort, so too will be a trip to the local "payday loan" company.

The interest rates on these things are so high, that if you're a golfer, it's like getting stuck in a sand pit with 10-foot dirt walls. You can swing at the ball all day long and still never make it out.

For those trying to get out of debt, a "payday loan" can literally be a money pit without end. So how do you get out of it? With a vengeance!

That is to say, with all of your might. It will take great effort and in many cases, it may mean having to sell stuff or get a second job.

Of course, if you're struggling with a gambling habit to boot, then I highly recommend some kind of counseling. For those that just made the mistake of taking one of these outrageous loans, well, you've got a tough road ahead, but it's not an impossible one by any means.

It can be done. You can do it!

For the rest of us, avoid these types of loans like the plague. You won't regret it.