There may come a time when a credit card company is tired of waiting for your money and they will sue you. You may have been asking them to provide substantiation of the debt, but they hadn't been responding. One day, a stranger may come calling on you and give you a summons to appear in court. At that point you may feel a bit overwhelmed.
Help is actually around.
I had earlier gotten a letter from a mediation firm stating that there was to be a court action against me soon. I fished out that piece of mail and gave them a call. Seems there was a company that was representing a credit card that I had once used that was now actively pursuing the money from me. They stated that the balance owed was $9,000 and were taking me to court about it.
I showed up to court and asked for a continuance (especially since I had just been given the summons a few days prior). Visions of wage garnishment and such were running through my head. It was a total feeling of panic.
That's where the mediator came in.
We met and discussed my earnings, my expenses, etc. The mediator put together a proposal (after a fee was paid) and there was a voice mail a few days later that they would settle for a lump sum payment of $5,600. I was saved, after taxes and expenses, around $1,500. It wasn't exactly what I wanted, but better than the alternative.
My advice: Be careful, be open to all options, and use your head. Have a GREAT day!!
Sunday, June 7, 2009
Saturday, June 6, 2009
Help Getting Out of Credit Card Debt
Face it. You have to charge less than you are paying off. Bottom line. Freeing up extra money on an ongoing basis is key to achieving this. Yesterday, we discussed a bit about automobiles. It was revealed that a used card will cost less because it is, well, used. But you don't lose nearly the amount of money that you would (buying new) when you leave the car lot.
Too often people are driven only by "How much will it cost per month?" This kind of thinking is so short-term that it is frightening when you actually take the time to do some of the math. Sure, it only costs $250 dollars a month. The sticker price may say $10,999. "I can afford that", you say. A new car loan can often be rolled into a package that is for 72 months, or six years. Most people don't keep a car for four years, so if you trade it in, your car may only be worth $3,000 after four years. You still owe $6,000 on that car. You are now upside down on the car and a dealer would be happy to roll that into your new car purchase. Now, you will have a very difficult time getting out from being upside down.
If you did keep your car for the full six years, that $10,999 car would have cost you $18,000. Guess who pockets the extra $7,001? It isn't you. With a used car, you loan is for a shorter term, you pay less up front, and somebody else has already taken the depreciation hit on it.
All I have to say is that you need to think with your head and not your heart. Do your homework and you will thank yourself for that in the long term. Have a GREAT day! (visit my website, the book Never Surrender is scheduled for release on June 14, 2009)
Too often people are driven only by "How much will it cost per month?" This kind of thinking is so short-term that it is frightening when you actually take the time to do some of the math. Sure, it only costs $250 dollars a month. The sticker price may say $10,999. "I can afford that", you say. A new car loan can often be rolled into a package that is for 72 months, or six years. Most people don't keep a car for four years, so if you trade it in, your car may only be worth $3,000 after four years. You still owe $6,000 on that car. You are now upside down on the car and a dealer would be happy to roll that into your new car purchase. Now, you will have a very difficult time getting out from being upside down.
If you did keep your car for the full six years, that $10,999 car would have cost you $18,000. Guess who pockets the extra $7,001? It isn't you. With a used car, you loan is for a shorter term, you pay less up front, and somebody else has already taken the depreciation hit on it.
All I have to say is that you need to think with your head and not your heart. Do your homework and you will thank yourself for that in the long term. Have a GREAT day! (visit my website, the book Never Surrender is scheduled for release on June 14, 2009)
Friday, June 5, 2009
How 'You Gettin' There?
To eliminate credit card debt you need to have ways in which to save money and hopefully there have been some ideas presented that you could use. With the automobile daily in the news nowadays, perhaps we should explore buying a vehicle, after all, most people need one to get to and from work and to places in your life. If you are fortunate enough to live in a metropolitan area that has public transport, that can save a lot of money.
With a car being the biggest expense that one may make besides purchasing a home, you really should do some homework when buying a car.
*NEW vs USED - Nothing beats the feeling of having a new car that nobody else has driven. The challenge is that a new car immediately loses value the second that you drive it off the lot. Too often people look at how much a car costs per month instead of taking the time to figure out how much you will be paying over the long term. With today's financing options, you can blend in the insurance, taxes, and such into the loan. Back in the 1970s, a new car was often a three-year loan. Today, however, it is often a six year loan. You will always owe more than the car is worth usually up until the last payment. Woe is you if you happen to total the car and you have to come up with the money to pay it off.
Nowadays, I vote for used. Somebody else has already taken the hit for loss of value when they bought it new. You can always buy an extended warranty, but you really should take the time to explore the reviews of the car, research its usefulness over its life, and see what cars hold their value over time.
I drive an 11/12 year-old car. It looks nice and it serves the car's purpose: to get you from point A to point B. It is not an investment because there are a very minute number of cars that increase in value, so it is always a liability.
Always.
Sure, there are things that will wear out with a used car. We have had to replace the suspension, oxygen sensors, brakes, and tires. The costs for those (plus the loan payment) is still lower than the cost for a new car.
Use your head, have a GREAT day, and keep looking for ways to save money so that you can eliminate your credit card debt!
With a car being the biggest expense that one may make besides purchasing a home, you really should do some homework when buying a car.
*NEW vs USED - Nothing beats the feeling of having a new car that nobody else has driven. The challenge is that a new car immediately loses value the second that you drive it off the lot. Too often people look at how much a car costs per month instead of taking the time to figure out how much you will be paying over the long term. With today's financing options, you can blend in the insurance, taxes, and such into the loan. Back in the 1970s, a new car was often a three-year loan. Today, however, it is often a six year loan. You will always owe more than the car is worth usually up until the last payment. Woe is you if you happen to total the car and you have to come up with the money to pay it off.
Nowadays, I vote for used. Somebody else has already taken the hit for loss of value when they bought it new. You can always buy an extended warranty, but you really should take the time to explore the reviews of the car, research its usefulness over its life, and see what cars hold their value over time.
I drive an 11/12 year-old car. It looks nice and it serves the car's purpose: to get you from point A to point B. It is not an investment because there are a very minute number of cars that increase in value, so it is always a liability.
Always.
Sure, there are things that will wear out with a used car. We have had to replace the suspension, oxygen sensors, brakes, and tires. The costs for those (plus the loan payment) is still lower than the cost for a new car.
Use your head, have a GREAT day, and keep looking for ways to save money so that you can eliminate your credit card debt!
Thursday, June 4, 2009
Hold Your Head Up
When in the quest to eliminate your credit card debt, it becomes a challenge at times to remain focused and disciplined. The stress level can be extremely heavy at times, and that stress can take its toll on you if you aren't prepared to deal with it. Here are some "stress busters" that may help you to deal with the stress of eliminating credit card debt, but also with other stresses in your life:
* Exercise - You wouldn't have to train for a marathon nor attempt to break the world record for weight-lifting, but sometimes something as simple as a thirty minute walk can help to put your mind on something else. Personally, I use the summertime months to get my exercise outdoors by mowing our yard (by hand, of course). The hour or so gives me some much needed exercise plus the satisfaction of seeing our lawn look neat (and it saves money to do it yourself)
* Read a PMA (Positive Mental Attitude) book - you don't have to run to the bookstore to find these books, they are often at the local library for free. Some of my favorites include Think and Grow Rich by Napoleon Hill, See You At the Top by Zig Ziglar, or Personal Power by Anthony Robbins
* Take a picnic lunch/dinner to a park - just having dinner and enjoying the outdoors (while saving money) can serve as a "charge" to your inner batteries
* Listen to music - Some people like to listen to music (and most radio stations are free) and there is a variety of stations out there for you. You can even find music that you like to listen to online for free.
My personal wish is for you to become successful in eliminating your credit card debt and to enjoy life as it was meant to be enjoyed! Have a GREAT day!
* Exercise - You wouldn't have to train for a marathon nor attempt to break the world record for weight-lifting, but sometimes something as simple as a thirty minute walk can help to put your mind on something else. Personally, I use the summertime months to get my exercise outdoors by mowing our yard (by hand, of course). The hour or so gives me some much needed exercise plus the satisfaction of seeing our lawn look neat (and it saves money to do it yourself)
* Read a PMA (Positive Mental Attitude) book - you don't have to run to the bookstore to find these books, they are often at the local library for free. Some of my favorites include Think and Grow Rich by Napoleon Hill, See You At the Top by Zig Ziglar, or Personal Power by Anthony Robbins
* Take a picnic lunch/dinner to a park - just having dinner and enjoying the outdoors (while saving money) can serve as a "charge" to your inner batteries
* Listen to music - Some people like to listen to music (and most radio stations are free) and there is a variety of stations out there for you. You can even find music that you like to listen to online for free.
My personal wish is for you to become successful in eliminating your credit card debt and to enjoy life as it was meant to be enjoyed! Have a GREAT day!
Wednesday, June 3, 2009
Wow, It's Wednesday
In my struggle to eliminate credit card debt, there comes some point to where desperation is the order of business. Perhaps you get served a summons to appear in court a few days prior to being in court. You dutifully show up to court, realizing that you are one of 100+ to appear before the court to find out that if you didn't appear in court, you would have had a summary judgement against you. It doesn't matter that you have asked in writing (sent by certified mail) for proof that the debt was yours and so forth and so on, but, despite your efforts to achieve documentation of proof that the debt was yours, they just issued you a summons to appear in court.
That is a sobering experience.
Having prepared taxes for a few years for a major company ("You Got People"), I was well aware of the 10% penalty on early withdrawals from an IRA. I also knew that all of the money you take as an early disbursement is taxed as income. When backed against a wall, the options narrow. Fortunately, it appears, after preparing a mock 1040 with the new income, I was relieved last night (after watching the Cardinals at their stadium win a game) when I ran the numbers and it appears that things will work out, it still leaves a sinking feeling that credit card debt is a serious problem.
I am dealing with it as best I can.
Thank God I have family and friends that support my efforts and I know that everything will work out, even though I have to work twice as hard. Don't believe that it is easy to change years of habit. It isn't.
But it can happen. Believe that in your heart of hearts that it is possible, because it is. Thank you for all of your support.
That is a sobering experience.
Having prepared taxes for a few years for a major company ("You Got People"), I was well aware of the 10% penalty on early withdrawals from an IRA. I also knew that all of the money you take as an early disbursement is taxed as income. When backed against a wall, the options narrow. Fortunately, it appears, after preparing a mock 1040 with the new income, I was relieved last night (after watching the Cardinals at their stadium win a game) when I ran the numbers and it appears that things will work out, it still leaves a sinking feeling that credit card debt is a serious problem.
I am dealing with it as best I can.
Thank God I have family and friends that support my efforts and I know that everything will work out, even though I have to work twice as hard. Don't believe that it is easy to change years of habit. It isn't.
But it can happen. Believe that in your heart of hearts that it is possible, because it is. Thank you for all of your support.
Tuesday, June 2, 2009
Your Tax Dollars At Work
A library is wonderful resource that too few people take advantage of. I was fortunate to grow up loving libraries. My grandmother was the librarian for her little town in North Central Arkansas since I was a little boy. Some of my fondest memories were spending a week with my mother's parents down at their farm. It was a wonderful experience for a young child because I would spend the days with my grandmother while she was working at the library and the evenings with my grandfather who was a carpenter and farmer.
Learning to read at an early age and having been read to gave me a great escape with a book. Libraries are, for the most part, paid for out of our local tax, but remain a storehouse of knowledge. For free. You wouldn't have to pay for a newspaper because you could always read the copy at the library. You didn't have to buy books to read them, you would check them out at the library and return them when you were finished.
Libraries today are more than a repository for books. There are audio books available. You can check out movies and videos. There is even free Internet access available at many libraries. You should check out the one in your local town. It is a great source of entertainment for children in the summer. Heck, you don't need to limit it to just a few months a year.
In your quest to eliminate costs from your life and eliminate your credit card debt you should be open to many of the low-cost and no-cost options out there that you might otherwise overlook.
Have a GREAT day!
Learning to read at an early age and having been read to gave me a great escape with a book. Libraries are, for the most part, paid for out of our local tax, but remain a storehouse of knowledge. For free. You wouldn't have to pay for a newspaper because you could always read the copy at the library. You didn't have to buy books to read them, you would check them out at the library and return them when you were finished.
Libraries today are more than a repository for books. There are audio books available. You can check out movies and videos. There is even free Internet access available at many libraries. You should check out the one in your local town. It is a great source of entertainment for children in the summer. Heck, you don't need to limit it to just a few months a year.
In your quest to eliminate costs from your life and eliminate your credit card debt you should be open to many of the low-cost and no-cost options out there that you might otherwise overlook.
Have a GREAT day!
Monday, June 1, 2009
June-"Bugs"
As you strive to eliminate credit card debt from your life, there are always challenges or "bugs" that come up and may create a temporary hindrance to your goal. They will happen, and you have to pay them some attention, but you don't need to be paralyzed by them. In fact, knowing that things may come up can be empowering in some small way.
It is good to remain focused on the ultimate goal which is to become credit card debt free. Recently I had a bit of a "stumble" because I had to have one of my back teeth crowned. I was told that a tooth that had a filling (for about 30 years) had to be replaced. No big deal because I have dental insurance, although, I will admit, I don't like to visit dentists and often neglect to have regular checkups. There even was an FSA that had been set up through my work although it was funded for my yearly glasses expense. I was not "pleasantly" surprised when the bill was nearly $600 with insurance.
I paid it, although the money could have been used for my glasses, but we shall overcome that. The focus still remains on lowering credit card debt and eliminating that from my life. It does affect everything that is one and saving money has become somewhat of a passion in my life. Yesterday is a good example. Time was not allotted to prepare my lunch to take to work and when my lunch hour came, I went to Wendy's. I kick myself now because I could have used the money saved by packing ramen noodles to have an extra $6.85 to pay toward credit card debt.
So it is with life. It doesn't matter how many times you may stumble or fall, what matters is how many times you brush yourself off and get back into the race in which slow and steady wins the race in the long run.
Have a GREAT day! (You can sign up for my eBook notification on the right side of the blog).
It is good to remain focused on the ultimate goal which is to become credit card debt free. Recently I had a bit of a "stumble" because I had to have one of my back teeth crowned. I was told that a tooth that had a filling (for about 30 years) had to be replaced. No big deal because I have dental insurance, although, I will admit, I don't like to visit dentists and often neglect to have regular checkups. There even was an FSA that had been set up through my work although it was funded for my yearly glasses expense. I was not "pleasantly" surprised when the bill was nearly $600 with insurance.
I paid it, although the money could have been used for my glasses, but we shall overcome that. The focus still remains on lowering credit card debt and eliminating that from my life. It does affect everything that is one and saving money has become somewhat of a passion in my life. Yesterday is a good example. Time was not allotted to prepare my lunch to take to work and when my lunch hour came, I went to Wendy's. I kick myself now because I could have used the money saved by packing ramen noodles to have an extra $6.85 to pay toward credit card debt.
So it is with life. It doesn't matter how many times you may stumble or fall, what matters is how many times you brush yourself off and get back into the race in which slow and steady wins the race in the long run.
Have a GREAT day! (You can sign up for my eBook notification on the right side of the blog).
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