What is Debt Consolidation
Credit Card Debt Consolidation
Medical Debt Consolidation
7 Tips About Debt Consolidation
Common Debt Consolidation Mistakes
Debt Consolidation
Risks of Debt Consolidation, Types of Debt Consolidation Loans, Pros & Cons
Balance Transfer or Debt Consolidation?
Debt/Credit Calculators
 
Discussion Forum
 
Credit Counseling and You
Non-Profit Credit Counseling
 
Consequences of Credit Card Default
Effects of Credit Card Default
9 Common Credit Card Mistakes
Eliminate Credit Card Debt in 90 Days
Credit Card Debt
10 Expenses You Can Not Afford If You Have Credit Card Debt
Truth About Credit Card Companies
Should I Tear Apart My $300 Limit Credit Card - The Worst Credit Card Ever?
Disputing Credit Card Debt
401k vs Credit Cards: Where to invest?
 
Debt Settlement Letters
Sample Letters
Write a Powerful Debt Validation Letter
Reputable Debt Settlement Agreement
 
Debt Settlement vs. Debt Consolidation
Dangers of Debt Settlement
Avoid Debt Settlement Pitfalls
Debt Relief Tools/Debt Management Programs
Debt Settlement FAQs
Is Debt Settlement Money Taxable?
 
Reduce Medical Debt
Free Bill Consolidation: Does it exist?
Budgeting to Stay Debt Free
10 Debt Reduction Mistakes
Should I Pay Off my Debt or Save Up for a Down Payment on a House?
Bill Consolidation
Three Secrets to Lowering Your Debt
Tips To Lower Your Bills
 
Government Debt Help
Debt Help During Recession
Debt Relief During a Recession
What Debt Relief Means
 
Pay Off $50,000 Debt
Worried About Bills?
Money & Debt Videos
Report Illegal Collection Activity
Managing Medical Bills
Medical Debt & Bankruptcy
The Facts on Debt
Debt Quotations
Drowning In Debt?
Who to pay first?
Managing Debt FAQs
Medical Debt Solution
12 Hot Tips for Eliminating Debt
7 Debt Elimination Mistakes
2 Ways to Achieve Debt Elimination - Debt Snowball Elimination Method
 
Payday Loan Consolidation
Payday Loan Debt Consolidation
Payday Loan Relief
Default on a Payday Loan?
Payday Loans | Consumer Information
Problems with Payday Loan Stores
Bad Credit Loan Relief
How Payday Loans Work
 
What is Loan Consolidation?
How to get a $50,000 loan
Get an $80,000 Loan
$100,000 Loan for Debt Repayment
Veteran's Home Loan Refinance Options
Government Loans vs. Private Loans
Finding a Government Loan
Student Loan Consequences
 
Reputable Debt Consolidation Companies
Debt Consolidation Company Reviews
Reputable Debt Management Companies
List of Debt Companies in USA
Debt Companies By City
 
How Debt Affects Your Credit
What is shown on my credit report?
Improve Your Credit Score
Correct Credit Report Errors
Can Debt Settlement Ruin Credit?
Can Debt Negotiation Ruin Your Credit?
 
401k Limits
Safe CD Rates
Financial Planning
Banks versus Credit Unions
AMEX Horror Stories
IRS Tips For Audit
Choosing a Tax Preparer
American's not planning for long term care
Understanding Usury Laws
Unemployed During A Recession
FREE Government Grants
Where does money really come from?
 
About Us
Contact Us
6 Payday Loan Debts Owe
Borrow a Loan to Pay Off Payday Loan?
My husband was out of his job and Payday Loans were rolling over

Debt Consolidation Facts

1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will identify you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair Isaac).

2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% - 30%!

3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have at least 2 credit cards and 14% of them have 10 or more credit cards.

Debt Elimination Mistakes

Debt elimination can be a very tricky process.  Before you start addressing it, you’ll want to know what it is.  Debt elimination, simply put, means eliminating your debts.  You devise a plan to address and eliminate our debt. This presents some very unique challenges when attempting it on your own. 

Don’t get discouraged; however, you can do it yourself.

Video: Suze Orman - Why Do We Need Credit Cards?

7 Common Mistakes

There are many mistakes made when attempting to eliminate debt.  Below are seven of the most common.  Don’t make these mistakes.

  • Not devising a budget and sticking to it.
  • Canceling credit cards before they are paid off.  Never do this if you can help it.
  • Obtaining new debt.
  • Paying only the minimum amount due each month.
  • Getting a debt consolidation loan.
  • Falling prey to a debt elimination scam.
  • The final one – putting off dealing with your debt.

Scams

Don’t fall prey to credit repair scams, which are fairly common today.  The Federal Trade Commission (FTC) provides some good indicators to look for when dealing with credit repair companies.

  • debt elimination mistakesThe company requires you to pay for their services up front before they even do any work for you.  By law, they cannot require payment until after they have completed their services.
  • The company mentions nothing about your rights, nor what steps you can take yourself that cost you nothing.
  • The company discourages you from contacting the three major credit reporting agencies yourself.
  • The company states that they can eliminate most, if not all, negative information on your credit report, even though that information is accurate.
  • The company directs you to apply for an employer identification number (EIN).  The purpose, they say, is to create a brand new credit identity and a fresh, new credit report. They tell you to use this for identification, instead of your social security number.
  • The company tells you to dispute all information on your credit report, even accurate information.

Debt Elimination Strategy

Before you do anything in attempts to eliminate your debt, you have to establish a household budget.  Without a concrete budget, you will fail before you get started on your quest to eliminate debt.

Your debt elimination strategy has to begin with a budget in order to get your financial picture in focus.  Once you know what’s coming in and what has to go out, you’ll know what’s left over.  You can use the leftover to eliminate and pay off your debt.

debt mistakes

There are many resources available online and in the form of books to assist you in creating and maintaining a household budget.  Below are several that give direction and clarification of the steps necessary to establish a solid budget.

  • Suze Orman
  • Dave Ramsey
  • Providian
  • CNN Money
  • MSN Money
  • Money Instructor
  • Kiplinger
  • Vertex42
  • Living A Better Life
  • Money Instructor
  • Foxway
  • Free Financial Advice