Being financially tangled is difficult. Nothing is more lucrative than a peaceful financial status-no creditors to keep haunting you. But to some this is a ceaseless pursuit. Stop chasing against the wind and follow these five straightforward guidelines to free yourself from excessive financial obligation.
1. Change your spending habits. Avoid impulsive buying and fix your budget. An excellent way to put this into practice is to stop using credit cards when shopping. Keep your credit cards at home and use cash instead. Never cash in more than your weekly budget. Make every effort to buy only the things that you need. Write them down and stick to your list.
2. Go for corporate credit over personal credit. The former allows you to increase your net worth as you make loans while the latter can get you penniless. Also, corporate credit gives better options as far as your credit is concern. Just be sure you transact with the right people who renders the right services applicable to you.
3. Think hard before you file for bankruptcy. Consider your options. You have to understand that with bankruptcy there is no going back. Filing for bankruptcy is a way of saying you give up. It is a notice to the whole world that you legally declare your inability to pay your debts. Even if the government sees bankruptcy as a chance for people to have a ‘fresh start’, your filing will still reflect on your credit record. Needless to say, it would injure your credit scores significantly. Once you file for bankruptcy you give your creditors the right to possibly seize everything you have to cover up your debts. You will practically loose everything! It doesn’t end there, even if you declare bankruptcy you will still have to pay $3,000 to $5,000 for legal and filing fees. Think, think, and re-think.
4. Many banks in the US have become strict with their laws when it comes to debt settlement. Let me give you a list of some of the banks which would not settle with anyone: Citibank, Amex, Capital One, Discover and the list could go on and on. These are just some of the facts that settlement or relief programs personnel don’t want you to know. Another thing they won’t be telling you is about their secret charges of up to 15% of your total balance which is really a big amount to waste on them! So be very careful in choosing such programs and always ask them to disclose all possible charges beforehand.
5. Use your money wisely, purchase assets which can increase your income. Don’t spend your loans on things which will not yield positive cash flow for you. Assets are good, but be sure they are not just assets, they should also be profitable assets like marketable securities, CDs, etc.
Apply these five guidelines-make your investments worthwhile. Be responsible with your finances. Save as much as you can. Seek help from people who are knowledgeable in the credit industry. Don’t rush and always choose to live a debt free life.
Allan Henry is an expert in the topic of how can i eliminate credit card debt; he has helped overburdened debtors for many years. Visit www.whatisdebtelimination.com for info on what is debt elimination and get FREE information that will save you from debt pitfalls.
