It is amazing the number of families who are in debt in the United State, not to mention the world. As a whole we are trapped by everything we owe. It kind of Sucks. I personally believe that banks have the hidden objective to get us to buy what we can not afford. Look at all the banks that are failing right now because they gave home loans to people who could not afford them. Now as more and more people find themselves not able to pay for their mortgages, the banks are foreclosing then reselling the homes for less than what is owed on the, That means the banks are loosing money.

We as a people need to realize that we should only buy what we can afford. If we have debt right now, we should strive to get out of debt. We should sell everything we have not used un 6 months or longer and focus that money on our credit card debt. Then when we exhaust that avenue, we should consolidate everything onto a low interest rate card.

You should be able to call up one of your credit card companies and ask them to lower the interest rate on the card. Tell them that you plan to move all your credit card debt to that card. If they are smart they will jump on the opportunity, drop your interest rate to a promotional rate and offer to help you to transfer all you debt to that card. Their interest will be to earn the interest on more of your debt. Now you can focus everything on paying off that card.

Today I came across a website that talks about how you can consolidate debtand the best ways to save your money. On bills.com they discuss many ways you can reduce your debt. They show you companies who focus on ways to bring your payments down and allow you to pay off your debt faster. A lot of the information on this site is free. They make money by matching you with debt consolidation companies, but their articles are absolutely free and contain invaluable information. My favorite is their Boot Camp to Consolidate Debt

Take a few minutes and look over the site. You may just learn a little tidbit about how to reduce your debt that you might not know. I did.

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Credit….

It seems to me that too many people rely on credit to live their lives. We use credit to buy homes, cars, clothes, entertainment and even food. We believe that we should be able to have what we want right now and will use other people’s money to get it right now. I think that most people don’t realize that when you buy something with credit you pay so much more for that particular item. That’s why I think it’s crazy to pay for the food you eat every week with a credit card, especially if you don’t pay it off every month.

There are so many people out there right now who don’t know how to get themselves out of the hole they dug themselves into. This is where debt management and debt consolidation come into play. Sometime you just have to admit that you need help to get yourself out of debt. You might even want to take a moment to find out what an IVA (Individual Voluntary Arrangement) is and maybe learn about organizations who specialize in helping you get out of debt.

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A lot of people believe that Money is the root of all Evil. It is true that more than 50% of marriages in America end in divorce. There is also the fact that most divorces are either caused by unfaithfulness or arguments about Money. I will have to say that I agree that money is a terrible necessity. You have to have it in order to live, but the more you have, (usually) the more money you spend. The more money you spend, the more money you need. The more money you need, the more debt you could get yourself into. It is just a horrible circle that nearly everyone gets into.

So, now you are going to ask me, “How do I keep Money from ruling my life? How do I get out of that circle?” The only real answer that I can give you is, “Don’t spend more than you earn.” I know, it’s easier said than done, but I strongly believe that if you can get to the point where you are only spending 80% of your paycheck every month, you will pretty much be set for life.

The reason that most people get into a circle that allows money to rule over them is because they spend it on things they really cannot afford. Then they spend the rest of their life trying to pay for that one thing that they really didn’t need in the first place. For instance, don’t buy a brand new $24,000 Mustang, when you can get a year old used Focus for $11,000. It will still get you from point A to Point B like the Mustang would and you will have it paid for in a lot less time. Then you can save the money every month that you would be normally paying for the Focus and then you can buy that Mustang in cash.

Buy what you can afford, not what you want. If you always bought what you wanted, then you would be in debt up to your eyeballs.

Pay off your credit cards. If you have to stay home with no cable, no internet or no cell phone for a year to do it, then that is what you should do. It may be a difficult sacrifice, but it will be worth it when you don’t have to make payments every month on a pizza you bought six months ago. Who knows, maybe you will be able to get that novel written that you have always wanted to write, sell it to a publisher and get royalty checks for the rest of your life.

I know, I have rambled on about nothing, but it seems that too many people out there are a slave to their finances. I don’t want to see people having to work till they’re dead because they spent more than they ever earned. Hold back and give yourself time to think before making any purchase. You will be glad that you did.

Go back to the How to Eliminate Your Debt Page.