Getting Rid Of Debt And Managing Credit

Living debt free is a done deal for more and more Americans

, so if you think it is an impossible dream, read on!

There are many advocates for using credit. "It is the only way to build a robust credit score." "Use credit to make money." "Buy now, pay later." "No interest charges and no payments for a year." "Wise use of credit can be the foundation of a smart fiscal policy."

Most people do not realize how much money dribbles away on a cup of coffee here, a new notebook there, a pair of shoes to match a dress your sister gave you. By writing down every single cent that goes out for a month or two, you will finally know where your money goes.

Then a budget must be built, with all the bills listed first and the categories set. Some expenses are beyond discussion and are set in stone. When all these are listed, the rest of your income must be allocated to food, fun, and giving. All of these are important. You meed to eat, life without fun is drudgery, and giving helps the world go round more pleasantly for all.

Like alcoholism or drug use, going cold turkey on credit use is the only way most individuals can get out of the credit trap. For some, it takes counseling to overcome the urge to reach fora credit card when finances get tight and the desire of the moment is out of reach using budget funds. Although some debt reduction programs carry a hefty price tag, the discipline a good program teaches may be worth it. It means a lot to many people to have the backing of a structured program while they are trying to get rid of debt.

"Now you're getting crazy, " you may be thinking. But this is how the folks operate who are serious about living without credit. They truly examine what their priorities are and set goals that may demand very stringent measures, especially at first. Carpooling, carrying a lunch to work, getting books at the library instead of the book store, using last year's computer one year longer, giving up the gym membership and walking instead for a while.

If you factor the price of any object bought on credit - the total price - you would probably never pay that much up front. The compounding of interest is a business strategy that makes the credit companies rich beyond belief. Getting out from under the charges placed on consumer debt is like a labor of Hercules, and you may feel that it will never happen in your lifetime.

Do not decide to keep the car and give up fun. Not only do you need fun in your life, but you often interact with friends and family while playing. Just have fun that does not cost much. Make a kite out of heavy junk mail and straight sticks - you can probably fit a little string in the 'Fun' category of expenses - and fly it; all concerned will remember both the kite and the excursion. Pull out all the local team paraphernalia and watch the game on TV in style - Take a walk with the whole gang - get together for cards or board games - talk to each other (hot air is free!). In other words, track your expenses, figure your income, and make the act of staying within it an art, not a penance. You can do it!

by: Ray Cleeves

POST COMMENT

A To Z Of Credit Card Processing Define A Line Of Credit Loan. Make The Most Out Of Credit Card Options Charity Credit Cards: Characteristics And Features Free Credit Report - How To Minimize Identity Theft Damage Free Credit Report -stopping Identity Theft Early Rules Governing Credit Card Debt Forgiveness Divorce and Your Credit Score Leather Credit Card Holders Keep Your Financial Cards Secure Bad Credit Payday Loans - Funds The Urgent Needs Of People Instant Bad Credit Loans: Convenient Funds Instantly Accessible Short Term Loans No Credit Check-for Poor Creditors Installment Loans No Credit Check - Simple Money With Simple Repayment