How to be debt Free- How 7 steps Saved me from drowing in Debt

People are declaring bankruptcy at record rates, with one in every 100 families affected by a bankruptcy.

With Christmas around the corner, now is the time to get your debt under control, it is all to easy to over spend during the festive period, but if you could put 7 simple plans into action the year 2008 will be a much brighter year for you and your family.

It is strange to think that even in this time of doom and gloom that people do not realise, that there is a way to make extra money, there is another way to start paying of those debts.

Before you get to the 7 step plan to cut your debt, imagine if I can show you, how to start making money with just your computer and a internet connection, imagine what an extra $50 - $100 can do for you.

There are loads of scams on the internet, just waiting to trap the unwary and desperate people out there, trying to make some extra money. Making money online is not hard, all you need is a excellent guide book, to show you the way.
There are literally thousands of ways on the internet to make money, do you realise that most can be set up wit out any capital, you can set up a website with as little as $5 a month, yet you earning potential is unlimited.

Before you investigate ways of making extra money on the internet, I urge you to get a copy of “Cheat-Marketing”

Seven steps to get your debt under control:


Step No. 1: Make a list of all your debt.
This first step may be the hardest part of dealing with your debt. Put all your bills in a pile. Then list your debts in order, starting with the largest balance first. Next to the amount, list the minimum monthly payment, and the interest rate you are paying on that card. Now you know where you stand.

Step No. 2: Prioritise your repayments.
If you have one or two small balances, you might want to apply extra money to pay them off, while continuing to pay the minimum on the cards with larger balances. Or you might want to pay off the card with the highest interest rate first.

When you have paid off the smaller balances, attack the larger ones. Here is a trick that can save you years of interest charges. Simply double the minimum monthly payment

Step No. 3: Eliminate credit cards and dont roll over balances. When you pay off a card, notify the company that you want to close the account.
Don’t roll balances from card to card. Every time you get a new card, you are generating an outstanding open credit line that will appear on your credit report.

Step No. 4: Get a copy of your credit report and credit score .
Your credit report is simply a compilation of your bill-paying history. Don’t hide from the truth. There may be some errors on your credit report that you will want to correct by contacting merchants. And if you do make progress toward paying down your balances, you will want to make sure they are correctly reported.

Step No. 5: Make a spending plan.
Now is the time to change your free-spending ways. To do that, track the money that is coming in and going out. Fortunately, there are easy ways to do that. One thing worth spending money on is personal finance software such as Microsoft Money and Quicken. Both programs let you track all your check writing by category and make monthly comparisons of your actual spending to the amount you have budgeted.


Step No. 6: Be careful about the equity in your home.
In the past few years, Americans have withdrawn billions of dollars worth of equity in their homes. The ads and commercials are tempting, because the rates on home equity loans are typically lower than the rates charged on outstanding credit card balances.

But there are dangers in home equity loans. Frequently, the money is used to pay down credit cards, which are then charged up again. The banking industry has a term for it: reloading.


Step No. 7: Get help.
Sometimes credit problems are easily attacked once you have faced up to them. But for some people, the problem of overspending is a psychological one. Spending can become a habit that is as difficult to kick as alcohol, drugs or gambling.

In those cases, its wise to seek help from professionals. The only problem is that there are so many advertisements for credit counselling that you cant be sure whether they are rip-offs. Id suggest you stick with one of the national, non-profit credit counselling services such as Consumer Credit Counselling Services.

Conclusion
If you have taken these seven steps, you should be able to work your way out of debt and toward a brighter future.

It will take time and lots of self-discipline. Its worth the effort.


Regards

Alan Scholtz

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