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Step No. 2: Eliminate credit cards and don’t roll over balances. Once paid off, notify company that you want to close account. Step No. 3: Make a spending plan. Change your free-spending ways. Track money that’s coming in and going out. Use a debit card instead of your credit card. Download your bank transactions into a computer program for easy categorizing.
Step No. 4: Be careful about equity in your home. Billions of dollars worth of equity has been withdrawn from millions of homes in last few years. But many people pay down credit cards only to charge them up again – and then you don’t have safety net of equity in your home.
Step No. 5: Get help. For some people, problem of overspending is a psychological one. Spending can become a habit that’s as difficult to kick as alcohol, drugs or gambling. Sometimes, its due to circumstances they truly could not avoid: medical bills or divorce or loss of a job.
You can talk with a credit counselor on a private basis. It only appears on your credit report if you enter their debt repayment program.
During this holiday season, as you consider your finances, remember that Americans are now carrying $683 billion in revolving credit card debt. 47% of people who paid less than full amount on their credit card bills in a recent month, made only minimum payment due.
The good news is that planning and professional help will definitely help you turn things around.
Case in point: I went from bankrupt with zero assets living in a boarding house, to gainfully employed, running my own homebased business, with 2 houses and excellent re-established credit.
In other words, it can be done.
Pay-off-debt-now.com is run by Drew Harris and is a one-stop-shop web portal for those facing crushing debt issues. Multiple pages of resources, referrals and tools. Expert advice on credit cards, loans and avoiding bankruptcy. http://tinyurl.com/4bbum