I saw a great comment and had to make a post of it here. Reading this is like a free version of Debt Cures. So if you want to know how to get out of debt and avoid credit problems, listen to what Debbi has to say and save the $40 you would spend on Kevin Trudeau’s book. Thank you Debbi for sending this in.
Debbi’s 10 tips to control your debt:
For all of you that have been suckered into buying this book let me just say that anyone who has had to deal with fraudulent charges on their credit card soon learns that the two magic words are “Identity Theft”. I did not purchase this book, and will not ( I might borrow it, just for entertainment value). Here is some FREE advice on how to control ( it’s impossible to get out of) debt.
1. Pay off lowest balance credit card, while still paying minimum on others. Take the difference from the paid off card and pay off next lowest balance card… continue. It will take time but your credit score will improve and you will be in more control.
2. On payday, put aside 5-10 % into a interest bearing savings account, BEFORE you pay bills.
3. Figure out what your weekly living expenses are and get that amount of money from your bank and put your credit cards (except one for emergency) into a safety deposit box at your bank. Take the one emergency credit card and freeze it. Carry one check with you. (Leave the other checks in the SDB) Use only cash for purchases. If you need to purchase something outside of your “allowance” write a check, but remember to deduct that amount from future “allowances” over a period of weeks or months.
4. Do not charge up more than 35% of total credit, but do put a small amount on your credit card that you can pay. Paying off credit cards for good actually lowers your credit score. You shouldn’t have more than five credit cards. If you have more, cancel the highest interest ones. Get rid of store credit cards. Any specials they have are counter productive by the time you pay the bill.
A great, and easy thing to do to help build your credit up ( after you have paid your credit card off- refer to step 1): say you have 4 credit cards. There about 4 weeks in a month.
Once a week fill up your gas tank ( or purchase transportation pass/tokens etc.) using one credit card. As soon as you get home that day send the payment in to that credit card company. Do not wait to get the bill. The revolving credit will be there, but you will not have to deal with billing cycles or late fees. The next week, use a different card and so on.
5. Stop buying junk you don’t use. Just because it’s on sale it doesn’t make it a bargain.
6. clean out your closets and storage areas and have a yard sale. put proceeds towards your debt. Or donate the items and take the tax write- off. Those really come in handy.
7. Allot a reasonable amount of money each week for entertainment. If you don’t find time for fun you can resent it and actually go into deeper debt by overcompensating.
8. If you have children, give them age appropriate chores and pay them an allowance. Allow them to spend 40% and require that they put 60% into a savings towards a wanted item. Explain to them that when they have twice as much as needed for the item they may purchase it. That way they always have money saved and they get to enjoy their purchase more.
9. DO NOT BUY THINGS ON TV OR ONLINE. The shipping and interest fees will hurt you. If you can’t pay cash for it at a store, you really don’t need it. Believe it or not there was a time that you had to actually talk to a salesperson face to face. You didn’t have to “press one for English”.
10. IF you have late fees or bank fees, take the time to go into the bank and talk to the bank manager and explain that you have a set plan to reduce your debt and ask if the bank will waive any overdraft or other fees. I have done this. You can’t do it more than once in a six month period, but if you are kind and honest with the bank, they will usually work with you. As far as credit card companies are concerned talk to a supervisor. Ask to have the late fee or overdraft fee removed in exchange for having the difference of the payment due paid in X amount of days (usually 10-15).
So there you go. Advice to help you with your debt management. All I want as payment is for you to pass this advice on. Maybe we should send this plan to the government and demand that the FICO score become obsolete. Basically, it doesn’t matter what your previous credit experience. If you cannot afford it, you shouldn’t be extended credit for it (excluding medical needs)
Save your money…..Don’t buy the book. Use common sense.
Thank you again Debbi Hobbs for sending in your own Debt Cures. If you have any other debt tips you’d like to share, you can send them in as a comment.
Have a great day,