Debt Help The Battle of the Budget: How To Get Out of Debt

By: Alvin Apple

A lot of people I talk to tell me that they have a great idea for

a home business, but when I ask them when they are going to start

it up, more often than not they say something like, "Well, I

would start, but I don't have a lot of spare cash right now," or,

"I just need to get out of debt first."

Debt is one of our most universally felt problems. Almost

everyone has been in debt at some point. Debt can feel

oppressive, frustrating and debilitating, but quite often it

isn't as bad as it seems. The key to getting out of debt is

action. You can't bury your head in the sand. Take control of

your problem. If you let debt rule your life, you'll never get

anywhere, and you can be sure that you'll never get that business

off the ground. Here are a few tips which might help.

First, Budget. I can't stress how important this is. If you

don't know how much money you have and where it's gone too,

you'll never see the light at the end of the tunnel. Keep

meticulous records, and eliminate every wasteful expenditure you

can. This may sound difficult, but it is a must, and it gets

easier as you get used to doing it.

Second, Aggressively pay off your credit cards. Credit cards

can be a huge drain on your income simply because of interest.

Most card payment plans are set up so that your minimum payment

is only slightly larger than your monthly finance charge. If you

stick to the minimum you will end up paying thousands in

interest, a few dollars at a time. You've got to pay as much per

month as you possibly can. Send double and triple payments

whenever possible, and always give the most to the card with the

highest interest rate.

Also, several credit card companies offer very low interest rates

for the first six months, or even year, on new accounts. If your

credit rating is still decent, you may want to open a new credit

account with one of these companies. You can then transfer your

high interest balance onto the new card and then pay it down as

quickly as possible.

Third, Go to a credit counselor or debt consolidator. Consumer

Credit Counseling or Debt Counselors of America are reputable

agencies in this line of work. The main benefit here is that if

you sign an agreement with a credit counselor, quite often your

creditors will agree to lower your interest rates and even forego

your late fees, something they would never do if you asked on

your own. Also, 98% of your creditors will stop reporting you as

late or delinquent to the credit reporting agencies. This type

of agreement will typically freeze your accounts until paid in

full, but if you're really trying to get out of debt then you

shouldn't be using your credit cards anyway, right?

Finally, Do NOT declare bankruptcy. Sometimes things can get so

bad that declaring bankruptcy may seem like the only answer. It

isn't, and it will only cause you more trouble. Bankruptcy can

eliminate your debt, yes, but it also completely ruins your

credit rating for the next ten years. If you are dreaming of

starting a business, forget it. No one will finance you for

anything, not even a gas card, with a bankruptcy on your record.

So remember. Keep a working budget, this is the basic key to

getting out of debt, and the other tips won't work without it.

Pay off your credit cards, and stop losing your money to

interest. If necessary go to a debt counselor, but never, I

repeat never, declare bankruptcy. There's money to be made out

there if you just know how to do it.

 About The Author...

Alvin Apple helps everyday people start businesses they will enjoy. Then he teaches them how to succeed.Read all his helpful strategies at AlvinAdebt_helppple.com   Reach Alvin at 801-328-9006 or alvin@drnunley.com .

Provided By: Business, Finance and Management