How Credit Card Debt Elimination Will Prevent You From Filing For Bankruptcy

Credit Card Debt Elimination

credit card debt eliminationBeing in debt and mismanaging finances can place a person or even an entire household in a difficult position. In order to free oneself from debt, a lot of individuals consider filing bankruptcy. The recent revisions in bankruptcy laws have changed the situation. With these new laws, it is not as easy for people to be debt-free via bankruptcy. Still, there are still some people and circumstances to which bankruptcy is applicable. However, the effect that bankruptcy brings can last for years. When thinking about filing for bankruptcy, one should first find other options to eliminate debt. Here are three credit card debt elimination strategies which may help.

Credit Card Debt Elimination = No More Credit Card Usage!

Those who do not file bankruptcy have different decisions to make. For example, one person who has amassed 20,000 of debt is in a different position to someone who has 5,000 of debt. The one who has a smaller amount of debt may be able to pay the balance owed without even filing bankruptcy. The person who has $20,000 amount of debt doesn’t have to file bankruptcy, but they would have to make a huge personal sacrifice to eliminate their debt.

If  you are in really serious about credit card debt elimination, credit card usage should be limited. Actually, if one can help it, stop using credit cards at all. Another tip is to pay more than the monthly minimum. Do you know that monthly minimum payments hardly cover additional finance fees? In order to be able to reduce balance significantly, pay the required minimum amount monthly and add $50 or $100 more.

A successful credit card debt elimination plan is rooted in one’s discipline and sacrifice in just using cash to pay for living expenses and necessities.

Credit Card Debt Elimination Options


Request Lower  Interest Rates

If negotiation with the creditor is possible, grab the opportunity to seek lower interest rate. Usually, this can be asked if one has been a good payer to the credit card company.

When asking for a reduction of interest rate, it is best to put the best foot forward. Having a good history of credit and repayment may be able to convince the creditor to reduce interest rates.

Credit score also plays a role when a creditor considers interest rate reduction. A low credit score might need the assistance of debt consolidation agency.

Once your interest rate is lessened, is it much easier to reduce the outstanding balance. This is because your financial fees will be significantly lessened.

Refinancing or Home Equity Loan

Homeowners have an advantage when trying to eliminate debt. Why? Because values of homes increase through time, therefore owners gain equity on their property. When one is a homeowner, it is possible to tap into the property’s equity. Refinancing a home or getting home equity loan will enable the owner to have a considerable amount of money which can be utilized for debt consolidation.

These are just a few debt elimination strategies which can be included in your credit card debt elimination plan. Remember, managing finances properly can lead to a debt-free comfortable life. So click on the link below to see how credit card debt elimination can help get out of debt.

Debt Elimination Is The Best Way To Being Debt-Free

Bottom line is  it doesn’t matter how large your debt is…. You can always find how out with some sound debt elimination techniques.

But for you to clear your debt once and for all you’ve got to be in it for the long haul. If you have amassed  alot of debt over the years, you have got to be ready to work at reducing it. Some quick solution measures at debt elimination are designed as damage-control measures which try to find a way around the issue without dumping it.

Such debt elimination plans don’t get rid of the main problem though they seem to do so, and your difficulties get multiplied.

Of course, if you’re much too deep in debt and bankruptcy is forthcoming, the last ditch effort to repay your dues is thru an assertive form of debt elimination called debt settlement.

In this situation, you being the borrower take the aid of a debt settlement agency to get your lender to cause a decrease in the quantity of cash that you owe. If the settlement is authorized, you will get a notice from the creditor that the debt has been settled or paid. After this, it is going to be left to your creditor to inform the credit bureau that you have managed to clear all of the dues that you owed. Settlement is especially appealing for creditors during periods of difficult finance eventualities for the debtor, when he’s close to the point of filing bankruptcy, in which case the creditor is faced with the chance of losing extra money by getting only a trifle portion of the first. Debt settlements are only applicable to unsecured debts like those concerning mastercards and medical dues.

Also, remember this is an emergency measure. Once this is done, the effects will need to be dealt with. This would include stuff like a broken credit history, a rise in collection calls, the probability of legal actions, tax duties, and that all-too-familiar requirement of coming to a terms with your lender. All that you need is backbone, patience, and an eagerness to try out the latest of debt reduction techniques : debt-snowballing or debt repayment. When it is card related debt or something similar, reducing debt by this strategy becomes very straightforward.

To get your debt out of your way, first make a detailed list of all of your dues in descending order from the highest balance to the smallest ( notice the order isn’t based primarily on interest, but on the due amount ). If it so occurs that some of the debts are of a corresponding price, place the ones with higher interest rates above the others. If surplus funds are left, add this to the dues on the tiniest debt, and keep targeting completing your dues on the littlest debt till it is paid off totally. As quickly as the tiniest debt is off the list, do the same steps for the subsequent ranked spot, this time adding the prior minimum amount for the cleared debt onto the funds allotted for the next. .

Follow this debt elimination technique over a longer period, and you’ll soon find how to get out of debt.

Why A Debt Reduction Spreadsheet Can Help Guide You Out of Debt

Debt Reduction Spreadsheet

If you are working on reducing your debt, a debt reduction spreadsheet may be the right tool to help you achieve your goal. There are many available for free on the internet and many of them come with a debt calculator that you can easily use with the spreadsheet. Debt reduction spreadsheets make it easier to see where you are starting from on your road to being debt free. As you change the situation, it makes it easier to track the changes you make.

Why A Debt Reduction Spreadsheet is Important?

A debt reduction spreadsheet  is important because it will help your keep track of changes to your income or expenses. Calculations may change for your projected dates of debt pay-off and amounts of payment depending on the debt reduction plan you are implementing. Changes can affect the estimated date of debt elimination in your debt reduction spreadsheet so it is important to record all changes.

The use of a debt reduction spreadsheet also helps keep you motivated by giving you a clear picture of goals and progress made on your debt reduction plan. A good visual aid can go a long way to enabling you to remain disciplined and on track.

Different Types Of Debt Reduction Spreadsheet

Not all debt reduction spreadsheets will look the same. They will vary depending on the debt reduction plan or method being implemented. Debt reduction spreadsheets work really well with the snowball method of debt reduction. Since this method usually requires the debt with the highest interest rate to be paid first, the debt reduction spreadsheet is a valuable way to maintain a record of which debts are to be paid and in what order.

Use the built in calculator on the debt reduction spreadsheet to update data necessary to complete your plan. Keeping track of increases in income or reduction in expenses can allow for more money to be paid towards debts. Using the calculator and making adjustments in the spreadsheet will show how much faster you can eliminate debt. Always customize the debt reduction spreadsheet to fit your personal goals and situation.

Debt Reduction Spreadsheet Alternatives

When I first taught people about debt reduction spreadsheets about 10 years, the spreadsheet was done with paper and pen. However, these days mostly everything automated and done on a computer. So most debt reduction spreadsheets are created on a spreadsheet template like Microsoft Excel. I have even seen a client of mine use a debt reduction spreadsheet on a Mac.

The New Debt Elimination Method To Eliminate Debt Very Quickly

Snow Ball Debt Elimination Method

Debt elimination is a goal that many people want and need to achieve. The ease and convenience with which we previously have charged purchases have been replaced by the stress and anxiety of debts that are approaching or surpassed unmanageably. This unfortunate position has compelled many people to seek professional assistance for debt elimination methods that can turn their situation around.

There are many companies and professional counselors to assist people with debt elimination. A professional counselor will evaluate the client’s financial situation in order to devise a plan to enable the client to reach the debt elimination goal. There are several methods that can be implemented in the plan for the client. One method for eliminating debt is the Snowball Method Debt Elimination method.

The Snowball Method is similar in theory to the image the name conjures. Basically, this method involves targeting the smallest debts to payoff first working up to the larger debts. The rate at which the debts are paid off gains speed as the program is followed, like a snowball rolling downhill.

Snowball Debt Elimination Method Are as Follows:

1) Make a List of All Debts

List your debts from the smallest balance to the largest which allows you to clearly see how the plan will reach the goal.

2) Make the Minimum Payment

The required minimum monthly payment that is stated on your monthly bill or statement should be paid on time. Once you have written down all your liabilities and the monthly budget has been established, make a pact with yourself to paying the bills on time and for the minimum required amount. As long as you don’t increase the debt by continuing to charge on the accounts, this will slowly begin to reduce all your debts.

3) Extra Payment Will Get The Debtors Away

Once all the minimum payments have been made, assess your budget to locate any extra money that can be added to the payment on the smallest debt. Pay the excess in addition to the minimum payment on the smallest debt. This will reduce the amount of this debt much more rapidly than paying the minimum payment alone. This will be the first debt eliminated.

4) Rinse and Repeat

Once the smallest debt has been paid off, use the money that would have gone to that monthly bill to add to the minimum payment towards the next debt on the list. The payment on the next debt will be the sum of:

a) The original monthly minimum payment
b) The monthly minimum payment of the previously eliminated debt
c) Making an extra payment on your smallest debt.

In this manner, the amount that is available to pay on each debt will increase as the previous debt is eliminated. This enables you to pay the higher debts much faster which results in the “snowball” affect. This debt elimination method will not only result in paying the debts off faster, but will save a lot of money by the time the plan is completed.

Complete Idiots Guide to Getting Out Of Debt

Guide to Getting Out Of Debt

If you are struggling under the yoke of high debt, the last thing you need is a lecture on the merits of timely payments and living within your means. You are probably looking for some straight-forward advice on how to get out of a tight situation. It doesn’t take a lot of brains to get into debt and it doesn’t take a genius to get out of it either. Here are some simple tips to start reducing debt.

Educate Yourself

Understand that you are not the first or last person to be in your position. Lots of people have been and are going through the battle with high debt. There is a lot of information printed, televised, written and blogged on the subject. Look for materials that offer different strategies for you to compare. Try a library or bookstore to get an idea of the many different programs from many experts. Choose a medium that is comfortable enough for you to really dedicate some focus to learning from. Remember, you are looking for information that is right for you, but don’t expect to see yourself in every situation discussed. What you’re looking for is a good understanding of the system and how you can work with it.

Organize Your Bills

Sit down and list all your monthly bills, monthly income and total outstanding debt. This action alone can be all the wake-up call most people need to alter their attitude towards credit and spending habits. You need to realistically see what you’re dealing with before you can formulate a budget. Even if you have to get assistance to make your new financial plan, this is a tool you will need.

Make a Realistic Budget

Evaluate the lists of income and out-go. Don’t forget those monthly living expenses. Cut back where you can. It won’t work to say, “I will spend nothing on entertainment” because when you prohibit yourself, you want it more. Instead make a smaller budget for entertainment and stick to the limit. It’s all about discipline.

Get Rid of High Interest

The reason for establishing a budget is to free up some cash to put towards your outstanding debt. You need to be able to pay more than the minimum monthly payment in order to start shrinking your debts. The interest charges that accumulate every month are a big part of debt becoming unmanageable. Paying more on these credit bills now will save money later.

Cut Back on Spending

Cut down the shopping! If you can’t pay cash, you can’t afford it. It really is that simple. You have to break the habit of using credit to make purchases. Nothing will accomplish that better than having to empty your wallet or go to an ATM to see your balance dwindle for a purchase you probably didn’t need.

Diversify Your Income

Extra money coming in means more money to pay on credit bills. Maybe going out and getting a second job is not possible. Try babysitting instead of partying on the weekend. Find a hobby that lets you make something that can be sold. Get an online job part-time and take all the earnings and put them on your credit bills. Don’t make the mistake of rewarding yourself for the extra work. Being out of debt is reward enough.