This is a secret that credit card companies hope that you don?t figure out on your own

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The secret technique to get rid of your debt for good
4 years ago
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The first thing that anyone who is faced with seemingly insurmountable debt must do is to recognize that now is the time to turn your life around. Debt, and in particular credit card debt, is not a good thing. The interest that you are paying on credit card debt wastes hundreds, even thousands of dollars of your hard-earned money. It doesn?t have to be that way. Even folks who don?t make a fortune do have the ability to eliminate their debt much faster than they ever expected possible. This is a secret that credit card companies hope that you don?t figure out on your own!

This step-by-step procedure, if followed exactly as described, is guaranteed to eliminate your debt completely in a matter of a few short years ??not decades. If you do very well, it may even be possible for you to completely pay off your debt in as little as only a few months!

Step One ??Attack your Debt without Fear

One of the biggest reasons people simply continue spending their entire lives only paying the minimum payments on their credit cards and throwing away their financial freedom is because they are afraid. They are terrified to open up ?the books??and see how much money they actually owe in total. The balance can be shocking and surprising enough sometimes that some people cry.

However ??keep in mind that this guide will take you through the entire process from start to finish. From the moment you are aware of your total debt balance, until the day that you are completely debt free, this guide will serve as your mentor and your roadmap. You must remain disciplined with the knowledge that you are striving to have a better life sooner than you ever would if you didn?t take action today. You are finally turning your life around. So there is no reason to have any fear.

Assess the Damage

At this stage, the only thing necessary is to gather every last bill that could be considered ?bad debt??into one place. Some people include car loans while others doubt. I will leave that up to you. But credit cards are the culprit we?re going after. Take each credit card or loan, and write down the remaining payoff balance, as well as the current interest rate. The balance is usually listed on the bill each month. If the interest rate isn?t, then call the toll-free number on the back of the credit card and ask for the current payoff balance and the current purchase interest rate for that credit card.

A sample list might be as follows:

Capital One: $12,453 at 9.99%
Chase: $6790 at 14.9%
AMEX: $13,567 at 12.9%
Old Navy card: $2300 at 21.9%

Total Debt: $35,110

Step Two ??Assess Current Battle Plan

You certainly have a current battle plan. However it isn?t working for you ??otherwise you wouldn?t be sinking even deeper in debt every month. However in order to fix the problem, it?s important to know what you?ve already been trying to do to fix the problem.

Now that you have all of your debts together and in one place, you are prepared to attack each debt full force, one at a time. For each debt, write down how much you typically pay every month. If you pay a standard amount slightly above the minimum payment, then write down that amount. If you pay the only the minimum payment, determine what the current minimum payment is (look at your last bill) and write down that amount.

Once you are done recording all of your payments, you are now ready to start outlining and scheduling your battle plan that will help you wipe out all of your debts!

Step Three ??Tighten the belt, and free up more cash

If you are already paying above the minimum payment on each credit card ??you are already miles ahead of the game. This will allow you to accelerate your debt destruction without having to change your budget very much, or at all!

If you are serious about getting rid of your debt once and for you, the only way to speed up the process even more is to take the time to go through all of your household expenses and isolate items that can be reduced or eliminated.

Most people cringe at the idea of doing this...however you would be surprised where $10 to $30 can be saved on individual expenses with a little bit of creativity. Read some frugal living articles for some fantastic ideas ??some of the easiest and quickest ideas include:

- Reduce your cable subscription or eliminated it completely (at least for now).
- Eliminate your phone bill by consolidating to an internet-cable-phone package that saves an average of $30 a month or so overall. It?s a misconception that digital phone doesn?t work as well ??most cable companies simply tap into the phone lines, so it is just as reliable after initial setup.
- Consider using your cell phone instead of a landline if your signal at home is good enough. Or eliminate your cell phone.
- Remove/block certain cell phone or land phone features (like caller-id, call waiting, etc?? that are costing you money.
- Cancel magazine or newspaper subscriptions.
- Cancel gym membership.

There are always ways in every single budget, no matter how poor folks are (assuming there?s at least some income) to stretch out a few extra dollars every month. When your monthly expenses are reduced by at least $50 to $100 (or more) ??you are prepared for the next step.

Step Four ??Negotiate With the Enemy

Before going to war with your debt, you want to offer your creditors an opportunity to avoid losing your business. Because, let?s face it ??the moment you are debt free?they are going to be knocking down your door for your business. Now is their opportunity to prove that they care about their customers.

There are two things that slow down your ability to pay off your debt. Number one is obvious ??the balance. But number two is not so obvious ??the interest rate. Some people don?t even realize how high some of their interest rates are, and they allow credit cards, typically the department store cards, to charge them over 21% interest every month. On a bill of $3000, that?s $630 a year. That means that you will be throwing $52.50 into the creditor?s pockets every month. We might as well simply throw our money in the trash!

This interest extends the length it takes to pay off these debts, so we need to reduce it ??or completely eliminate it if we can, so that as much of the money that we pay toward these debts go toward the principle (the balance) and not toward interest.

Your assignment before completing this step is to first call each creditor and tell them that you are considering transferring the balances on their card to another credit card with better interest. Ask them if they would be willing to lower their interest rate to at least under 10%. If they say no ??simply thank them for their business and hang up?and make note of who said no and who didn?t. This will help you decide which credit card accounts to close once those debts are paid off.

I called all of my creditors and no one was willing to help ??what do I do?

Don?t give up. The next step is to try to open up credit elsewhere. And keep in mind that the efforts you are going through in this step are only intended to accelerate your debt payoff. Even if nothing in this step works ??the technique in the following steps will still eliminate your debt in record time.

Regardless of whether any of the creditors were cooperative, you also want to determine whether you have enough credit available to obtain a low introductory rate. There are always card offers out there that offer a low promotional interest rate from 0% to 7.9% either for a limited 12 month period, or fixed until the balance is paid.

Be very careful when applying for these balance transfer offers. You want to make absolutely certain that there is a maximum balance transfer fee. If there is no maximum, then the credit card company will charge you 3% of whatever the balance transfer is. That means if you transfer $14,000 off of the hig
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