Debt Relief-How to get out and stay out of debt!

Debt Relief-How to get out and stay out of debt!
This entry was posted on 5/10/2006 3:20 AM and is filed under C-Debt Relief.

Debt Misery-Take The First Step To Relief Today!

An estimated 77 Million Americans have medical bills problems or medical debt. An estimated 50-60% Americans hold credit card balances, An estimated 56% rise in families with heads of house age 55 or older spending 40% of their income on debts! Sadly the commercial industry has become more greedy rewarded with percentage commissions rather then rewarding those for paying cash!!In the midst of this we fall victim to need rather then cautioning risky ventures and easy money, because more then ever we need money to just get by until tomorrow! Rent To Own, Bad Credit Loans and Cards are killing us in interest while tripling the price of the item or loan up to three times the retail price would be!!

So what do we do when we've gotten captured by the have to have it, can't pay for it with cash bug? How do we get out when we have gotten too far in?

Here are the first steps to take:

1. If it's rent to own or something you can take back, take it back immediately! You can always put that product on layaway later at much less a cost!

2. If you can't take it back to the store, then sell (NO PAWN SHOPS) it for what you owe on it, then pay the companies immediately. Sometimes this means selling off other things you have too, in order to pay your bills.

3. Take in room mates if you can to get some help with the bills. If you can't try to sell or find a less expensive place.

4. Minimize debt, buy generic items, remove unnecessary spending like extra clothes, cell phone, premium cable and such. Look for better deals on insurance, internet, phone company, there are all out there if you look.

1. Credit Counseling: In your local phone book, every state has their own credit counseling agency. The local agencies will negotiate with your credit card companies and unsecured debts to reduce your debt up to 57% and make one payment a month rather then to multiple companies. They also help you create a living budget. If you don't have one in your area try Care One will help you get out of debt and stay out of debt. From someone who has been there, "Don't wait another minute, do it now! They will help you stop the credit calls!"

2. If unemployed find work as quick as possible. If you have a temp agency apply there as those people work hard to get you into a position and even provide training! If employed take on a part time job.

3. Most regular utility, phone electric, cable are happy with you if you pay half the bill each month. If you get a shut off notice call them up and talk to them to set up payment arrangements.

TIP: It is crucial to keep in contact with your creditors even if you can't pay them.

Did you know? You can demand a secondary collection agency stop contacting you? Yes, I have the form letter and the law states that you have the right to only receive collection notices and calls from the creditor (companies you owe) themselves. Often times they will hire a collection agency and you have the right to tell the secondary agency to stop contacting you!

4. Rebuild Credit: Unfortunately to rebuild credit you have to be paying loans and long term bills on time for a year or more. Carlton Sheets talks about buying 1000 CD's to reestablish credit with your bank as they can be used as collateral and that takes around 6 months to a year and often multiple CD purchases!

5. DON'T TAKE RISKS! Immediately remove yourself from high risk money making programs! Just say NO! Click here to learn how to spot a bad program right from the email!

WARNING!! Use Bankruptcy as your last option. The laws have changed and now you have to go on a payment plan which some have said is higher and causes more credit problems then just using a credit counselor! If you must, shop around, do NOT use MALL lawyers as they have been known to not represent you well AND shop around you can get a reputable bankruptcy attorney for 500.00!