Debt - so easy to get into

[mountaingal]

Re: Debt - so easy to get into

arjen, thanks for the suze orman link, mi si har pon tv evry now and then. funny enough, lass time, she didda advise one woman who wanted to gift her house to her son, who promptly seh imma go sell di house fi pay off him credit card debt... [img]/forums/images/graemlins/crazy.gif[/img] suze tell di ooman fi hang on to her house cause as soon as di son sell off di house, imma go run up im credit card debt again, but neida she nor him a go ha nuttn.


budgeting an ting is what i am hoping the credit counsellor will set mi up wid next week. [img]/forums/images/graemlins/70384-praying.gif[/img]

[Englan Girl]

Re: Debt - so easy to get into

[img]/forums/images/graemlins/70459-hugs.gif[/img]MG [img]/forums/images/graemlins/70459-hugs.gif[/img] I feel your pain as I'm in debt and have been for a few decades now. I ain't complaining as I had some very good times and even bought an apartment along the way [img]/forums/images/graemlins/70374-lipsrsealed.gif[/img]. Finally taking steps to clear it, albeit at a slower rate as I won't sacrifice my periodic trips to JA

You'll get there [img]/forums/images/graemlins/70409-waytogo.gif[/img]

[RichD]

Re: Debt - so easy to get into

[ QUOTE ]
i can pull my own credit report? i thought that was a privilege ongle financial institutions and electronics stores had access to.

right now, mi owna credit card company a try help mi out - mi get one new one wid lower interest rate, and di girl tell mi fi use it fi pay off di one wid di bigger interest rate caw dem have promotion. but mi juss feel seh is a trap of some sort...

mi not too proud to seh mi wish at dem time yah mi had a man, caw mi know how man have all kinna tricks fi protect money...

[/ QUOTE ]

you can get you own free of cost by mail ...EQUIFAX and TRANSUNION CREDT are the two big ones up here get it from both:

http://www.equifax.com/EFX_Canada/consumer_information_centre/ownreport_e.html

or

http://www.tuscores.ca/content/page.jsp?...mp;locale=en_CA

[mountaingal]

Re: Debt - so easy to get into

thanks, Englan. i've been in debt before and managed to work my way out. at one time i even had the philosophy that debt was a normal part of life. but now that i'm older, i'm starting to long for financial freedom, and i cannot see it with the load mi a carry now. all like how mi waan go backa school.

i suppose debt is something that one has to put in perspective, and it look like you've done that, EG. [img]/forums/images/graemlins/70409-waytogo.gif[/img]


Rich - mi no really waan know mi credit rating... did i forget to say that? [img]/forums/images/graemlins/704555_dwl.gif[/img] aye sah.

[tsophra]

Re: Debt - so easy to get into


Paying Off Debt

With credit-card debt at epidemic proportions in this country--among the rich, among the poor--you must have seen television programs about getting out of debt, and you must have read dozens of articles explaining how to do it. I offer a step-by-step plan for getting out of debt in The 9 Steps to Financial Freedom, and there are other books available that cover the subject well, too. In short, there is plenty of help available to show you how to do get out of debt, you already know why you must get out of debt, and now I want you to take the actions that will enable you to reach that goal. Millions of people have done it, and so can you--but only if you raise it to a top priority and keep your vow to yourself to do it.

Having covered the topic at length in my Nine Steps Book, I am only going to summarize it here, because if you need to pay off debts, you need to know everything you can. However, here are ten important points to keep in mind:
If you are in credit card trouble, you must cut up all of your credit cards now, with the possible exception of one card for emergencies; do not carry this card in your wallet, however.

You must pay more than the minimum payment every month, as much more as you possibly can. If you owe a credit card company $5000 at 18 percent interest and all you do is pay the minimum each month it will take you over 30 years to pay it off.

You must pay off the credit card with the highest interest rate first, and the rest in descending order.

You must negotiate for yourself the best interest rates, even if it means switching credit cards every six months.

You must understand everything about how your credit card works--all fees, how the company charges you, all about the so-called grace period, everything.

You must honor all your debts equally--whether it's the money you owe Visa, or the money you owe your brother.

After you pay off one credit card, you must apply the money you have been paying that particular company to paying off another credit card.

If you doubt that you can do this yourself, you must get in touch with a wonderful nonprofit agency known as the Consumer Credit Counseling Service; they can be reached by calling 1-800-388-2227. They will help you organize and consolidate your debt.

You must never let this happen again.

After your debts have all been paid off, you are to apply the money you were paying all those months toward creating your future.

http://www.suzeorman.com/igsbase/igstemp...ofExpertiseID=5

[mountaingal]

Re: Debt - so easy to get into

lawd, arjen, mi feel fi bawl. it can feel like a never ending nightmare enuh, this credit card debt business. thanks for that excerpt.

mi already downgrade to a credit card with a lower interest rate than my current one. right now just have to transfer the balance on the higher one to the lower one, then go from there.

[tsophra]

Re: Debt - so easy to get into

find out how long the promo is ??? and the rate when the promo ends
and pay it down!!!
use your debit card for cash purposes!!!
if you have money saved..see if interest rate is more/less than your finance charges..you may want to funnel a likkle towards paying off the card

i think with money becoming so electronised(sp) its becomes more of a concept...paying cash brings you back to reality

good luck [img]/forums/images/graemlins/70459-hugs.gif[/img]

[Gen]

Re: Debt - so easy to get into

Debt doesn't have to be a bad thing..keep one card and one card only..pay for everything in cash...

beware of the "latte factor"...one cup of latte costs up to $5 a day...times 5 days = 25 per week..do the math for the year...invest that in an account that affords compound interest and well

basically all I am saying is that if you start early or even in your 40s you could have a tidy sum by the time you are 65.

Get a notebook and write down everything that you purchase even if it's a pack of gum...after 3-4 weeks...look at your purchases [img]/forums/images/graemlins/70374-lipsrsealed.gif[/img]

Try to save money by buying in bulk especially if you have the space to store it and if you have children..

good luck..

some great personal finance magazines are "money" "smart money" and "kiplingers personal finance"


I especiall favor money...great articles on how to boost your credit scores, etc

[tsophra]

Re: Debt - so easy to get into

Get Out of Debt Special

KEYS TO GETTING OUT OF DEBT
Always pay more than the minimum required on credit cards
Reduce interest rates
PAY DAY LOANS - SUZE SAYS
There are times when unconventional wisdom makes sense
It is better to take cash advances on a credit card rather than taking out a pay day loan at a very high interest rate
If you are paying an extremely high interest rate on a pay day loan, consider taking a loan from your 401K to pay off the pay day loan
DIFFERENCE BETWEEN DEBT CONSOLIDATION COMPANIES AND DEBT MANAGEMENT PROGRAMS

*DEBT MANAGEMENT PROGRAM - AN ORGANIZATION LIKE CCCS (CONSUMER CREDIT COUNSELING SERVICE)
The type of company Suze likes
A non-profit corporation that looks at your financial situation, provides classes to educate you and puts you on a debt management program where you pay them and they pay your creditors. The fee is usually $5-$15/month
Does not hurt your FICO score
*DEBT CONSOLIDATION COMPANY
Suze: "Say no to this type of company"
Tells you to stop paying your credit cards
Ruins your FICO score
You look horrible on paper, so they settle for a fraction of what you owe
Creditor usually agrees
You pay $700-$800 up front
You might even pay $100-$200/month in fees
You also have to give them a percentage of the discount they negotiated

[Afrocentriclady]

Re: Debt - so easy to get into

[ QUOTE ]
Debt - so easy to get into

[/ QUOTE ]

Undoubtedly!

[img]/forums/images/graemlins/smirk.gif[/img] Glad I'm not in debt... [img]/forums/images/graemlins/tongue.gif[/img]

[Blackstar*]

Re: Debt - so easy to get into

[ QUOTE ]
here we can get a free one anually, or pay a fee to each of the credit agencies.

the trick w/ the credit card thing is you have to look at the terms of the new lower rate credit card -- 6 mos, 1 yr, and seef you can pay off the transferred amount in that timeframe. Also note what their rate will be when this promo period come and pass. sometime dat is ridiculously hi yu fawt!. It can work if the terms good and you use the time well (to pay it all off).

and pls remove that stench of sexism, bout need man fi help you!!!!!! a ongle dem nummo know bout $$- yu credit counsla is probly a woman [img]/forums/images/graemlins/tongue.gif[/img]

[/ QUOTE ]
Di firss time mi hear tuffy ah chat sense - yuh muss lissen to har mountaingal.
Also, please don't tell your daughters that rubbish about "man fi help you". Thank you.

[Blackstar*]

Re: Debt - so easy to get into

I can't be bothered to add up chewing gum and latte, so I did my own budget by organizing myself a little:

- list fixed monthly expenses - house, monthly transport card, etc.
- add up annual cost of electricity, phone, insurance, taxes, food and so on and divide by 12

Calculate my average monthly expenditures from the above.
Then I decided how much I wanted to save to buy a house, invest, cash savings.
As soon as I get paid at the end of the month, I have automatic transfer for the total for the above into another account. From there my bills are paid, the money is re-routed to savings and investment accounts.

Anything left over is mine to spend on foolishness as I see fit. I pay for everything with a debit card and have one credit card I used to pay for work on my flat. It's almost paid off then I'll only have my mortgage.

The main thing in sticking to a budget is paying everything cash and reducing your fixed expenses as low as you can go. It could mean giving up some cable channels, cell phone subscription, etc.

Admittedly, I don't have two teenage girls. You may have to let them take on after school jobs so they will rely on you a bit less, mountaingal

Hope this all helps and good luck. [img]/forums/images/graemlins/70459-hugs.gif[/img]

[Seveen]

Re: Debt - so easy to get into

MG check out this link on Oprah's website

http://www2.oprah.com/money/debtdiet/money_debtdiet_main.jhtml

it's step by step plan to get out of debt - even a script when talking to your credit card company

also be careful with the debt counselor - some of the services offered in the US do help you become debt free - but it is noted on your credit report that you are using them - and it's like a mark against you.

there is another website where you can get all 3 credit reports for free - immediately i thinkk it's www.freecreditreport.com there was a lot of stuff on there from my ex-husband i cleaned up [img]/forums/images/graemlins/rolleyes.gif[/img]

good luck [img]/forums/images/graemlins/70459-hugs.gif[/img]

[Serenity82]

Re: Debt - so easy to get into

[ QUOTE ]
arjen, thanks for the suze orman link, mi si har pon tv evry now and then. funny enough, lass time, she didda advise one woman who wanted to gift her house to her son, who promptly seh imma go sell di house fi pay off him credit card debt... [img]/forums/images/graemlins/crazy.gif[/img] suze tell di ooman fi hang on to her house cause as soon as di son sell off di house, imma go run up im credit card debt again, but neida she nor him a go ha nuttn.


budgeting an ting is what i am hoping the credit counsellor will set mi up wid next week. [img]/forums/images/graemlins/70384-praying.gif[/img]

[/ QUOTE ]

The key is to:

-Stop using credit cards, rip them up...

-always pay above the minimum due each month

-only use your own money

I recentily ripped up all my credit cards so theres no temptation to use them. I was shocked after calculating how much I was paying in interest alone.

Here's a good workbook for figuring how how much interest you're paying and managing your debt:

http://www.fool.com/seminars/capitalone/index.htm?sid=0001&lid=000&

[Morpheous]

Re: Debt - so easy to get into

[ QUOTE ]
i cannot stay on top of my credit card spending...

[/ QUOTE ]
The highest interest rates are on credit cards. It is the most expensive form of loan/debt/borrowing one can get into. AVOID it at all cost. You don't need a credit card to do regular/everyday spendig. It's only good for credit status on larger loans like a mortage etc - but not as a deposit within itself. ALWAYS look at the APR and not just the interest rate.

For those in the UK, you can get your credit report from:
1. Experian formerly (CCN)
2. Equifax

Under the Data protection Act 1998 - you have a right to access any information held about you on paper or computer for a fee of £2.00 by other credit bureaux/agency.

Just to mention, some people for whatever reason, confuse credit score with credit search; two entirely different thing, though one can be used to aid the other.