Debt Management

Debt Management
Ok, we all need a little help in managing our debt. With the
economy the way it is right now and money being tight, we
need to reign in our credit card debt. How do we do that?

There are many financial advisors on tv and radio. Suze
Orman, Clark Howard, Dave Ramsey. They are all good in
their own right. I, however, am partial to Dave Ramsey. His
advice is a no-nonsense approach to getting out of debt.
Think of him as the Dr. Phil of finances.

There are also many debt consolidation companies. Some
are legitimate, some are not. Check them out with the better
business bureau before you give them any of your time or
money. Essentially what they are supposed to do, is take all
your debt and consolidate it into one payment. You pay
them, they pay your creditors. They negotiate a lower
balance or interest when possible on your behalf. They
don't offer this service for free. They charge a monthly fee
that varies from company to company. This may help you
pay off your debt, but it is a negative on your credit score. I
would only suggest using them if you already have a poor
credit score. If you are still able to make the minimum or
more on your credit cards and are not behind, I would try
another option. Dave Ramsey's Total Money Makeover is a
great plan. You can buy his book for under $15.

With all that said, there is no MAGIC PILL to take to get
financially fit. You need to acknowledge you have a problem
and decide to do something about it.

There are different methods and options. Decide what will
work best for you. But realistically the bottom line is, what?
You have to live on less than you make and put the rest
towards paying down your debt. If you need to bring in
more money because you are already living on a tight rope,
do that. If jobs in your area are scarce right now, try another
option. Create your own business. Find something you are
good at and create a side business out of it.

Most importantly, commit to making a change in your
financial life. And stick to it! You CAN do this!