Money Problems? Heres What to do right now...
| Category: Home Based Business | Date: 2003-04-04 |
A Special Report
People are not taught about managing their finances. They are taught many other things about life except this one, very important, aspect of daily life. This, coupled with the fact that lending institutions are unscrupulous in their bid to sign up anyone and everyone old enough to hold a credit card has seen an increase in the number of people who struggle with their financial affairs and struggle to pay their bills, and a rise in bankruptcies.
But its not only individuals who are struggling with their financial affairs. Small businesses are also facing the challenge, again due to a lack of real education in monetary matters and running a business, and also because many of them are buying into the belief that the economy is weak, and/or they are slowing down because of the possibility of war.
Another reason why everyone, individuals and businesses alike, are struggling is because their focus is on their struggle and whats going wrong and all manner of negative possibilities, rather than thinking about positive possibilities, whats going right, and what they can do to increase their business. They feel powerless and become trapped by their own negative thinking.
So, what can people do to get out of this rut? How can individuals and businesses get their finances in order? Here are some tips to help with overcoming debt and improve your financial situation.
1. Educate yourself. Its never too late to start. Instead of bemoaning, "I dont understand", or "Im always poor", or even "I dont deserve to be rich", make the decision to learn about money, and watch your self-talk. Whenever you think you dont deserve more or you are always poor, cancel the thought and replace it with "I always have enough" and "I have a rich abundance" and "I deserve wealth". (Your subconscious mind believes what you tell it, and in conjunction with natural universal principles, will work to attract what it believes you want - which is whatever you are focusing on. Therefore, it is important to focus on positive things! We attract to ourselves whatever it is we focus our attention on. You dont need to understand how this works, only that it does work. In any event, youve got nothing to lose by doing this, and everything to gain, because it works.
2. We inherit most of our money beliefs from our family, which is why, very often, struggling families produce children who grow up and continue the struggle. If they grow up hearing Dad say things like "lifes tough, we can never get anywhere, we never have enough money, well never be rich, its too hard," etc. etc., then what chance do we have? So, its important to put your life into perspective. If your parents thought this way, this is no reason for you to do the same. There are hundreds, no, thousands, of people in the world who did not buy into their parents limiting beliefs, and went on to create great success and immense wealth because they personally believed it was possible for them to do so.
3. If you are in debt and struggling, the first thing you need to do is get your facts straight. Make a list of all your debts, the balances owing on each, and the interest rates you are paying on each loan and credit card.
4. What are the "due by" dates on each statement? Obviously, the most urgent and most outstanding debts need to be dealt with first. Sort your bills into two piles - those that are non-deductible and those that are. (Non-deductible are things like credit cards, loans and car loans, and deductible are things like mortgages and some student loans fall into this category too.)
5. Aim to pay those debts that have the highest interest rate first. If you are getting into arrears, your first priority should be to contact the lending institute and talk to them. If you leave it, hoping it will go away or hoping for a miracle, it will only get worse and the lending institution will likely take action to recoup the money you owe, and when it gets to this stage, it is rarely pleasant. On the other hand, when you contact them first, they are usually more pleasant to deal with and are usually happy to negotiate terms with you, and in most cases, they would prefer to deal with you and sort it out than have to face the added expense of bringing in a debt collector. They can allow you to spread your payments out over a further extended time thus lowering what you owe each month... but you DO need to contact them the very moment you are aware that you cannot meet that months payment due.
6. Keep a record of each conversation, whether in person or by phone. Always get the name of the person you speak to and note it down, together with the date of the chat and the outline of the discussion along with the decisions and agreements reached. Save everything sent to you, including envelopes because these will have dates sent in the postmark (you never know when or if you might need this.)
7. If you find you are getting nowhere with your creditors, they are unhelpful, unsympathetic, and maybe, even threatening towards you, just tell them that if they cannot negotiate new terms with you, you will have no other option but to declare bankruptcy, and point out their chances of getting their money back then will be slim because they are not the only people to whom you owe money. Faced with this scenario, you may find they will be willing to talk with you and sort something out rather than face the prospect of getting nothing to very little from you. You put the ball back in their court giving them the option of getting everything you owe but over a longer period of time to reduce the monthly payments and also perhaps at a lower interest rate, or they can risk getting nothing, or a mere token sum. Point out it is in both your interests to negotiate workable terms, because if you are forced into bankruptcy, nobody wins.
8. In addition to contacting everyone to whom you owe money, go to your Bank, and ask them to consolidate all your loans and credit cards into the one loan - thus reducing your interest payable and the monthly amount payable. Then when you have achieved this, dont just pay the regular monthly amount due, where possible, always pay more.
9. Obtain a copy of your Credit Report. Check it thoroughly. You wouldnt believe how common it is for mistakes to exist on personal credit reports, which adversely affects a persons ability to obtain new credit or negotiate existing credit terms. You need to be sure your credit report is correct and if it isnt take immediate steps to rectify it.
10. If you are stressed or intimidated by the thought of having to negotiate new terms with your lending agencies or the bank in an attempt to consolidate your loans, you can consider using one of the many credit counseling agencies that are springing up. They are there to help you get out of debt, or deal with your creditors on your behalf. But be aware that as with any business these days, not all agencies can be trusted. Not all agencies have your best interests at heart. Do your research and ask questions. A good agency can not only offer expert advice, but also can step in and mediate for you with your creditors, negotiating new payment plans on your behalf. Some are non-profit organizations. Some offer their services for free and some charge a small fee based on what you can afford, if you can afford it.
Trustworthy credit or financial counseling agencies generally provide you with information free of charge and do not require that you hold a certain amount of debt before helping you. However, make sure you do ask for any costs involved before using an agency, and check their qualifications!
If you are looking for a good credit counseling agency, start with the National Foundation for Credit Counseling (NFCC). You can call 800-388-2227 to ask if there is a center near you. You can also consider Myvesta.org, Consumers First, and American Consumer Credit Counseling.
Whatever you do, do not be taken in by agencies that promise they can wipe your record clean or delete bad credit ratings. Many of the tactics they use are, in fact, illegal. Be especially aware of agencies that offer a service called "credit repair" which may be advertised as establishing a new credit identity for yourself and hiding your bad past record. This is highly illegal. Their adverts are aimed at people with existing bankruptcy history or poor credit records. Stay away from them. It is impossible to legally remove or erase your existing credit report.
11. If you are hassled by a debt collector, know your rights. In most states the law says they cannot contact you before 8.00 a.m. or after 9.00 p.m. and they are not "allowed" to harass you or your friends or family, although some more unscrupulous debt collectors will try to intimidate you, but if they know you know your rights and will stand up to them, they may back off. If they start calling you at your place of employment, write to them (dont call), asking them to not call or visit you there, and keep a record. If things are getting out of hand, you can contact the Federal Trade Commission (check the phone book) or get them online at http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
12. Always pay more than the minimum monthly due on your statements. Paying the recommended monthly figure will take forever to pay off and extends the time the creditor can enjoy the earnings they rake in from the high interest rates they are charging you. You can be penny-pinching and still survive. Look at ways to cut living expenses, and the money saved from these areas can go off your debts, thus allowing you to pay them off quicker. For example, do you buy your lunch each day? Its a lot cheaper to make it yourself and bring it from home. Buy the cheaper version of products for a while - most of them do just as good a job as the expensive variety and only lack a fancy "name" or packaging. You can find other ways to save money.
13. In addition to paying extra each month, consider transferring existing card debts over to just the one card and then cancel all other cards. Choose a card with the lowest interest rate and keep that one. If you have several cards, all with high amounts owing, you can also pay a bit extra on all cards, but focus your attention on one main card at a time, and put every cent you can spare into paying that one card off. Then continue with the next card, until eventually, all your cards are paid off.
14. As you pay off your card, even though the monthly payment due amount will eventually get smaller, keep paying the original amount off every month. You will pay it off much quicker and pay less interest in the long term. Then, as you pay off one card, the money you were using to pay that off, dont put it back into your "spending funds", put that money towards the NEXT card to be paid off. This extra amount will mean you can pay the second card off much faster. Do this process for all your cards.
15. Keep your eyes open for those occasional promotions Banks advertise to entice you to take out a credit card with them. They may advertise that you can transfer all your existing credit card debts to them at a lower interest rate for 6 months or 12 months. If the interest rate after that time is reasonable, this can save you a lot of money and enable you to make a bit dent in what you owe sooner. But before doing this, read the fine print. More and more people are taking advantage of these opportunities to consolidate debts at lower introductory rates, and then when the rate goes up to the regular rate, they move on to a new bank and a new offer. Banks are now including clauses that if you transfer again from your new card within a specified time, usually 12 months, the normal interest rate will automatically be applied to the balance owing... and you dont want that!
16. Consider using existing savings funds and investments, if you have any, towards paying off your credit card debts. Chances are your savings interest is not higher than the interest you are paying on your cards, so put it to work for you now by reducing your debts. You can always establish savings again after youve gotten out of debt.
17. If you own your own home, or even if you are still paying it off, if you have equity in it, you can approach the mortgage institution and get a home equity loan and use THAT to pay off your large, troublesome debts. In many instances, not only will this loan help you get out of immediate financial danger with your creditors, but in some cases, some of these types of loans are deductible.
Considering Bankruptcy...
This is to be avoided at all costs. Many consider this their only way out, or the easy way out, but this should be your absolute last resort. If you choose bankruptcy, know that your credit record will have this recorded for 10 years and you will have real problems trying to get credit during that time, and even with the history of bankruptcy on your record, lending institutions will still consider you a risk. Also, you do have to pay to go bankrupt - there are legal fees, court costs, etc. that must be paid by you.
In addition, you must consider that depending upon the type of bankruptcy relief you opt for, you wont get rid of all your financial obligations - things like child support, taxes, legal judgments, alimony, etc. etc. will still be payable by you. You may also lose most of your property, which will be taken from you and sold to pay your debts. The other bankruptcy option may suit you better, that of keeping your property but allowing the bankruptcy court full control of your finances, including your wage earnings. You have no say over what your earnings will be spent on - the focus will be on paying off your debts.
If your credit counseling agency actually advises you to go bankrupt - get a second opinion. There are unscrupulous agencies out there who charge you for their services and ultimately advice you to go bankrupt - be very aware if this happens to you.
Staying organized for the future.
1. Establish a system whereby new statements and bills, when opened, are put in a special folder or box so you wont lose them. Use a calendar to keep track of due by dates so you always pay on time. If you cannot pay by the due date, ring immediately and negotiate a date by which you can and will pay. You will avoid the added expense of paying late fees by keeping track of all your bills and knowing when to pay them. Dont throw your statements away. Keep them in case you ever need to go back to check out a discrepancy. Always balance your savings and check books immediately you receive your statements to keep accurate records.
2. Make a record of all your known daily, weekly, monthly, quarterly, and annual expenses. This includes rent, mortgage payments, weekly shopping, car running expenses, school fees, insurance payments, water, gas and electricity bills, telephone, etc. etc. Look at your income and work out a budget that will enable you to meet your financial obligations on time.
3. Understand your spending habits and what triggers your spending. Instead of going mad with the credit card on a shopping spree, join a support group; either live or online to help you manage your stress and anger.
4. Pay your credit cards off each month rather than let them grow and end up maintaining a balance which has to be paid off - resulting in more debt and lost money on high interest charges.
5. If your statement arrives with a notice about any changes to your credit contract, dont just bin it or file it away - read it!
6. Dont think you are stuck with a credit card that is charging high interest rates. If you find one with a lower rate, switch to it. You might like to contact your existing lender and ask them first if they will reduce your interest rate, and if not, take your business elsewhere. You can check out the various cards and their rates and terms by doing a little research. Try these places: CardWeb.com, CreditChoice, bankrate.com
7. Before applying for any new credit or loans, check your Credit Report. Do this in advance so you have time to fix any errors. You dont want a history of rejected credit applications added to your credit report, and especially if youve been rejected on the basis of incorrect information being held in your report in the first place!
8. Establish a savings plan, no matter how small. A couple of dollars a week is better than nothing, and when you can afford it, you can save larger amounts. Having a savings account is not just for achieving dream goals like holidays, a new car, etc. Having a savings account can be used in emergencies so you avoid having to use credit.
9. The very best advice, of course, is dont take your credit card out with you. Leave it home. Dont buy something if you cant afford it. Use your card for emergencies only.
10. Long term, keep only the one credit card - dont use store cards either. Just one credit card with a low spending limit. Use it for emergencies only. The simple truth is, many of us get into debt because we spend more than we earn... so, if you cant afford it, dont buy it. Alternatively, negotiate lay-bye terms - the shop keeps the merchandise while you pay it off and when youve paid it off, then you can have it.
Resources:
1. Building a Successful Coaching Business (a 2 hour Tape Set)
This tape set can actually help ANY business - not just coaching practices.
Do you hate the word marketing? Do you want your own coaching practice but are feeling unsure or uncomfortable in how to grow it? This is a most valuable tape set from coaches who built coaching practices with lightening speed and mentors other coaches to do the same. You will find out how to naturally market yourself and your practice in a logical, comfortable manner that you will enjoy and will get results from. If you really want to know how to build a coaching business that can earn you six figures and beyond, this is the tape series you must listen to!
This audiotape includes tips and strategies on how to build and market a successful coaching practice. Purchase from website at:
http://www.comprehensivecoachingu.com/audio.htm#biz
2. Finding a credit counselor. Many of these counseling services are non-profit organizations that offer services free of charge or for just a small fee to those who can afford it. A good place to start is with the National Foundation for Credit Counseling (NFCC). Call them at 800-388-2227 to find out if there is a center in your area. You can also consider Myvesta.org, Consumers First, and American Consumer Credit Counseling.
3. www.ameridebt.com This is a non profit organization that offers free evaluation and can help you to reduce your monthly repayments and/or consolidate your loans into one account, reduce interest rates and late fees, by contacting your creditors for you.
4. My Vesta at www.dca.org This organization can also help you to negotiate with creditors and consolidate your debts and offers some excellent on-line advice and effective steps that you can take yourself.
5. www.fool.com This site offers free online debt management lessons, including a free Get out of Debt workbook.
About the author.
Written by Terri Levine, MCC, PCC, MS, CCC-SLP, the President of Comprehensive Coaching U - The Professionals Coach Training Program, a popular Master Certified personal and business Coach, Public Speaker, and Author of "Create Your Ideal Body" and bestseller, "Work Yourself Happy" & "Coaching for an Extraordinary Life". She can be contacted via the website ComprehensiveCoachingU.com or by telephone: 215-699-4949.
terri@coachinginstruction.com
http://www.comprehensivecoachingu.com
People are not taught about managing their finances. They are taught many other things about life except this one, very important, aspect of daily life. This, coupled with the fact that lending institutions are unscrupulous in their bid to sign up anyone and everyone old enough to hold a credit card has seen an increase in the number of people who struggle with their financial affairs and struggle to pay their bills, and a rise in bankruptcies.
But its not only individuals who are struggling with their financial affairs. Small businesses are also facing the challenge, again due to a lack of real education in monetary matters and running a business, and also because many of them are buying into the belief that the economy is weak, and/or they are slowing down because of the possibility of war.
Another reason why everyone, individuals and businesses alike, are struggling is because their focus is on their struggle and whats going wrong and all manner of negative possibilities, rather than thinking about positive possibilities, whats going right, and what they can do to increase their business. They feel powerless and become trapped by their own negative thinking.
So, what can people do to get out of this rut? How can individuals and businesses get their finances in order? Here are some tips to help with overcoming debt and improve your financial situation.
1. Educate yourself. Its never too late to start. Instead of bemoaning, "I dont understand", or "Im always poor", or even "I dont deserve to be rich", make the decision to learn about money, and watch your self-talk. Whenever you think you dont deserve more or you are always poor, cancel the thought and replace it with "I always have enough" and "I have a rich abundance" and "I deserve wealth". (Your subconscious mind believes what you tell it, and in conjunction with natural universal principles, will work to attract what it believes you want - which is whatever you are focusing on. Therefore, it is important to focus on positive things! We attract to ourselves whatever it is we focus our attention on. You dont need to understand how this works, only that it does work. In any event, youve got nothing to lose by doing this, and everything to gain, because it works.
2. We inherit most of our money beliefs from our family, which is why, very often, struggling families produce children who grow up and continue the struggle. If they grow up hearing Dad say things like "lifes tough, we can never get anywhere, we never have enough money, well never be rich, its too hard," etc. etc., then what chance do we have? So, its important to put your life into perspective. If your parents thought this way, this is no reason for you to do the same. There are hundreds, no, thousands, of people in the world who did not buy into their parents limiting beliefs, and went on to create great success and immense wealth because they personally believed it was possible for them to do so.
3. If you are in debt and struggling, the first thing you need to do is get your facts straight. Make a list of all your debts, the balances owing on each, and the interest rates you are paying on each loan and credit card.
4. What are the "due by" dates on each statement? Obviously, the most urgent and most outstanding debts need to be dealt with first. Sort your bills into two piles - those that are non-deductible and those that are. (Non-deductible are things like credit cards, loans and car loans, and deductible are things like mortgages and some student loans fall into this category too.)
5. Aim to pay those debts that have the highest interest rate first. If you are getting into arrears, your first priority should be to contact the lending institute and talk to them. If you leave it, hoping it will go away or hoping for a miracle, it will only get worse and the lending institution will likely take action to recoup the money you owe, and when it gets to this stage, it is rarely pleasant. On the other hand, when you contact them first, they are usually more pleasant to deal with and are usually happy to negotiate terms with you, and in most cases, they would prefer to deal with you and sort it out than have to face the added expense of bringing in a debt collector. They can allow you to spread your payments out over a further extended time thus lowering what you owe each month... but you DO need to contact them the very moment you are aware that you cannot meet that months payment due.
6. Keep a record of each conversation, whether in person or by phone. Always get the name of the person you speak to and note it down, together with the date of the chat and the outline of the discussion along with the decisions and agreements reached. Save everything sent to you, including envelopes because these will have dates sent in the postmark (you never know when or if you might need this.)
7. If you find you are getting nowhere with your creditors, they are unhelpful, unsympathetic, and maybe, even threatening towards you, just tell them that if they cannot negotiate new terms with you, you will have no other option but to declare bankruptcy, and point out their chances of getting their money back then will be slim because they are not the only people to whom you owe money. Faced with this scenario, you may find they will be willing to talk with you and sort something out rather than face the prospect of getting nothing to very little from you. You put the ball back in their court giving them the option of getting everything you owe but over a longer period of time to reduce the monthly payments and also perhaps at a lower interest rate, or they can risk getting nothing, or a mere token sum. Point out it is in both your interests to negotiate workable terms, because if you are forced into bankruptcy, nobody wins.
8. In addition to contacting everyone to whom you owe money, go to your Bank, and ask them to consolidate all your loans and credit cards into the one loan - thus reducing your interest payable and the monthly amount payable. Then when you have achieved this, dont just pay the regular monthly amount due, where possible, always pay more.
9. Obtain a copy of your Credit Report. Check it thoroughly. You wouldnt believe how common it is for mistakes to exist on personal credit reports, which adversely affects a persons ability to obtain new credit or negotiate existing credit terms. You need to be sure your credit report is correct and if it isnt take immediate steps to rectify it.
10. If you are stressed or intimidated by the thought of having to negotiate new terms with your lending agencies or the bank in an attempt to consolidate your loans, you can consider using one of the many credit counseling agencies that are springing up. They are there to help you get out of debt, or deal with your creditors on your behalf. But be aware that as with any business these days, not all agencies can be trusted. Not all agencies have your best interests at heart. Do your research and ask questions. A good agency can not only offer expert advice, but also can step in and mediate for you with your creditors, negotiating new payment plans on your behalf. Some are non-profit organizations. Some offer their services for free and some charge a small fee based on what you can afford, if you can afford it.
Trustworthy credit or financial counseling agencies generally provide you with information free of charge and do not require that you hold a certain amount of debt before helping you. However, make sure you do ask for any costs involved before using an agency, and check their qualifications!
If you are looking for a good credit counseling agency, start with the National Foundation for Credit Counseling (NFCC). You can call 800-388-2227 to ask if there is a center near you. You can also consider Myvesta.org, Consumers First, and American Consumer Credit Counseling.
Whatever you do, do not be taken in by agencies that promise they can wipe your record clean or delete bad credit ratings. Many of the tactics they use are, in fact, illegal. Be especially aware of agencies that offer a service called "credit repair" which may be advertised as establishing a new credit identity for yourself and hiding your bad past record. This is highly illegal. Their adverts are aimed at people with existing bankruptcy history or poor credit records. Stay away from them. It is impossible to legally remove or erase your existing credit report.
11. If you are hassled by a debt collector, know your rights. In most states the law says they cannot contact you before 8.00 a.m. or after 9.00 p.m. and they are not "allowed" to harass you or your friends or family, although some more unscrupulous debt collectors will try to intimidate you, but if they know you know your rights and will stand up to them, they may back off. If they start calling you at your place of employment, write to them (dont call), asking them to not call or visit you there, and keep a record. If things are getting out of hand, you can contact the Federal Trade Commission (check the phone book) or get them online at http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
12. Always pay more than the minimum monthly due on your statements. Paying the recommended monthly figure will take forever to pay off and extends the time the creditor can enjoy the earnings they rake in from the high interest rates they are charging you. You can be penny-pinching and still survive. Look at ways to cut living expenses, and the money saved from these areas can go off your debts, thus allowing you to pay them off quicker. For example, do you buy your lunch each day? Its a lot cheaper to make it yourself and bring it from home. Buy the cheaper version of products for a while - most of them do just as good a job as the expensive variety and only lack a fancy "name" or packaging. You can find other ways to save money.
13. In addition to paying extra each month, consider transferring existing card debts over to just the one card and then cancel all other cards. Choose a card with the lowest interest rate and keep that one. If you have several cards, all with high amounts owing, you can also pay a bit extra on all cards, but focus your attention on one main card at a time, and put every cent you can spare into paying that one card off. Then continue with the next card, until eventually, all your cards are paid off.
14. As you pay off your card, even though the monthly payment due amount will eventually get smaller, keep paying the original amount off every month. You will pay it off much quicker and pay less interest in the long term. Then, as you pay off one card, the money you were using to pay that off, dont put it back into your "spending funds", put that money towards the NEXT card to be paid off. This extra amount will mean you can pay the second card off much faster. Do this process for all your cards.
15. Keep your eyes open for those occasional promotions Banks advertise to entice you to take out a credit card with them. They may advertise that you can transfer all your existing credit card debts to them at a lower interest rate for 6 months or 12 months. If the interest rate after that time is reasonable, this can save you a lot of money and enable you to make a bit dent in what you owe sooner. But before doing this, read the fine print. More and more people are taking advantage of these opportunities to consolidate debts at lower introductory rates, and then when the rate goes up to the regular rate, they move on to a new bank and a new offer. Banks are now including clauses that if you transfer again from your new card within a specified time, usually 12 months, the normal interest rate will automatically be applied to the balance owing... and you dont want that!
16. Consider using existing savings funds and investments, if you have any, towards paying off your credit card debts. Chances are your savings interest is not higher than the interest you are paying on your cards, so put it to work for you now by reducing your debts. You can always establish savings again after youve gotten out of debt.
17. If you own your own home, or even if you are still paying it off, if you have equity in it, you can approach the mortgage institution and get a home equity loan and use THAT to pay off your large, troublesome debts. In many instances, not only will this loan help you get out of immediate financial danger with your creditors, but in some cases, some of these types of loans are deductible.
Considering Bankruptcy...
This is to be avoided at all costs. Many consider this their only way out, or the easy way out, but this should be your absolute last resort. If you choose bankruptcy, know that your credit record will have this recorded for 10 years and you will have real problems trying to get credit during that time, and even with the history of bankruptcy on your record, lending institutions will still consider you a risk. Also, you do have to pay to go bankrupt - there are legal fees, court costs, etc. that must be paid by you.
In addition, you must consider that depending upon the type of bankruptcy relief you opt for, you wont get rid of all your financial obligations - things like child support, taxes, legal judgments, alimony, etc. etc. will still be payable by you. You may also lose most of your property, which will be taken from you and sold to pay your debts. The other bankruptcy option may suit you better, that of keeping your property but allowing the bankruptcy court full control of your finances, including your wage earnings. You have no say over what your earnings will be spent on - the focus will be on paying off your debts.
If your credit counseling agency actually advises you to go bankrupt - get a second opinion. There are unscrupulous agencies out there who charge you for their services and ultimately advice you to go bankrupt - be very aware if this happens to you.
Staying organized for the future.
1. Establish a system whereby new statements and bills, when opened, are put in a special folder or box so you wont lose them. Use a calendar to keep track of due by dates so you always pay on time. If you cannot pay by the due date, ring immediately and negotiate a date by which you can and will pay. You will avoid the added expense of paying late fees by keeping track of all your bills and knowing when to pay them. Dont throw your statements away. Keep them in case you ever need to go back to check out a discrepancy. Always balance your savings and check books immediately you receive your statements to keep accurate records.
2. Make a record of all your known daily, weekly, monthly, quarterly, and annual expenses. This includes rent, mortgage payments, weekly shopping, car running expenses, school fees, insurance payments, water, gas and electricity bills, telephone, etc. etc. Look at your income and work out a budget that will enable you to meet your financial obligations on time.
3. Understand your spending habits and what triggers your spending. Instead of going mad with the credit card on a shopping spree, join a support group; either live or online to help you manage your stress and anger.
4. Pay your credit cards off each month rather than let them grow and end up maintaining a balance which has to be paid off - resulting in more debt and lost money on high interest charges.
5. If your statement arrives with a notice about any changes to your credit contract, dont just bin it or file it away - read it!
6. Dont think you are stuck with a credit card that is charging high interest rates. If you find one with a lower rate, switch to it. You might like to contact your existing lender and ask them first if they will reduce your interest rate, and if not, take your business elsewhere. You can check out the various cards and their rates and terms by doing a little research. Try these places: CardWeb.com, CreditChoice, bankrate.com
7. Before applying for any new credit or loans, check your Credit Report. Do this in advance so you have time to fix any errors. You dont want a history of rejected credit applications added to your credit report, and especially if youve been rejected on the basis of incorrect information being held in your report in the first place!
8. Establish a savings plan, no matter how small. A couple of dollars a week is better than nothing, and when you can afford it, you can save larger amounts. Having a savings account is not just for achieving dream goals like holidays, a new car, etc. Having a savings account can be used in emergencies so you avoid having to use credit.
9. The very best advice, of course, is dont take your credit card out with you. Leave it home. Dont buy something if you cant afford it. Use your card for emergencies only.
10. Long term, keep only the one credit card - dont use store cards either. Just one credit card with a low spending limit. Use it for emergencies only. The simple truth is, many of us get into debt because we spend more than we earn... so, if you cant afford it, dont buy it. Alternatively, negotiate lay-bye terms - the shop keeps the merchandise while you pay it off and when youve paid it off, then you can have it.
Resources:
1. Building a Successful Coaching Business (a 2 hour Tape Set)
This tape set can actually help ANY business - not just coaching practices.
Do you hate the word marketing? Do you want your own coaching practice but are feeling unsure or uncomfortable in how to grow it? This is a most valuable tape set from coaches who built coaching practices with lightening speed and mentors other coaches to do the same. You will find out how to naturally market yourself and your practice in a logical, comfortable manner that you will enjoy and will get results from. If you really want to know how to build a coaching business that can earn you six figures and beyond, this is the tape series you must listen to!
This audiotape includes tips and strategies on how to build and market a successful coaching practice. Purchase from website at:
http://www.comprehensivecoachingu.com/audio.htm#biz
2. Finding a credit counselor. Many of these counseling services are non-profit organizations that offer services free of charge or for just a small fee to those who can afford it. A good place to start is with the National Foundation for Credit Counseling (NFCC). Call them at 800-388-2227 to find out if there is a center in your area. You can also consider Myvesta.org, Consumers First, and American Consumer Credit Counseling.
3. www.ameridebt.com This is a non profit organization that offers free evaluation and can help you to reduce your monthly repayments and/or consolidate your loans into one account, reduce interest rates and late fees, by contacting your creditors for you.
4. My Vesta at www.dca.org This organization can also help you to negotiate with creditors and consolidate your debts and offers some excellent on-line advice and effective steps that you can take yourself.
5. www.fool.com This site offers free online debt management lessons, including a free Get out of Debt workbook.
About the author.
Written by Terri Levine, MCC, PCC, MS, CCC-SLP, the President of Comprehensive Coaching U - The Professionals Coach Training Program, a popular Master Certified personal and business Coach, Public Speaker, and Author of "Create Your Ideal Body" and bestseller, "Work Yourself Happy" & "Coaching for an Extraordinary Life". She can be contacted via the website ComprehensiveCoachingU.com or by telephone: 215-699-4949.
terri@coachinginstruction.com
http://www.comprehensivecoachingu.com
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