Best Debt Free Strategies and Credit Repair Tips
Your Step by Step Credit Repair Review
O.K. I will finally say it…
…Let’s face it… Being in debt sucks.
I don’t mean to be crude but there is just no way to sugar coat it.
You must find a way to pay your debts faster and start paying off debt.
Being in debt and just being able to pay the minimum monthly payments each month
You are a slave to the banks and to your debt.
You can’t go anywhere, do anything, your stuck. You are stuck in the muck of debt.
The more you fall behind or if you miss a payment, the higher the bank(s) jack up the interest rate on your credit cards.
Welcome to the black hole spiral of debt.
As Thomas Jefferson once said – “I believe that banking institutions are more dangerous to our liberties than standing armies.”
Thomas Jefferson was a very wise man. and they didn’t even have credit cards back then!
You have to fight back. And you must find a way to WIN!
You have spent the money and now somehow you will have to pay it back.
First thing that you must do is get control of your spending and live within your means.
Every person’s situation is different.
Two things we all have in common is income and expenses.
Once you determine your income – how much money you bring in each month.
Then it is a simple process to add up all of your basic living expenses.
If your basic living expenses are more than your income, then Houston we have a problem.
When I say “basic”,
I mean rent (the roof over your head), food ( got to eat), transportation to get you to and from work (car,gas,insurance), utilities ( electric, heat?, cooking gas etc).
That is pretty much it for the most basic of your day to day living expenses.
If you currently can not cover those with your current income then you will need to find a way to get more income because there is not much to cut out or save within your basic needs.
You will need to get a secondary source of income – another full time or part time job.
If on the other hand you do have sufficient income to cover and pay for your basic needs and day to day cost of living expenses,
but overspend your monies on non essential items outside of your basic needs,
then that is another issue that can be easily delt with.
Curb your spending habits to fit your paycheck
If you find yourself needing to get an extra job to pay the bills, then put all of that extra income to go towards paying additional amounts against your debts.
If you just pay the minimum amount that the bank requires you will never get your debts paid off.
You must always pay more towards the debt payment.
This could even apply toward paying down your house mortgage.
Anything that you pay over and above the basic mortgage payment or credit cards, goes directly toward your principle.
That extra payment knocks down the amount of interest you will have to pay over the years.
Now all of a sudden you are compounding in reverse!
Accelerating your mortgage payment and taking years off of the payback period.
When it is time to ask for help…
…You are going to need a get out of debt plan.
At a certain point you may want to speak to a free credit repair or debt consolidation counselor.
These are professional debt counselors who deal with people just like you, who are also going through a debt management crisis.
A credit repair counselor or debt counselor is a professional who knows all of the laws,
all of your consumer rights, and talks to and negeotiates with the banks on a daily basis.
Just about every debt consolidation company offers a free consultation call.
When you make your free consoltation call to a professional credit counselor, they will discuss in detail your various options.
They may also help you create a timeline to paydown your debts and get debt free again,
They will provide you with a proven plan to get out of debt fast.
What types of credit repair help or debt consolidation solutions might they come up with…
…tailored to your lifestyle and needs?
There are many ways to go about attacking your debt.
And yes you must think about your debt in terms of attacking it.
This is WAR!
This is a war or battle no different than our “Sons of Liberty” faced during the Revolutionary War.
When they had to get the British taxes off of their backs in order for them to prosper and thrive.
In your situation you need to get the boot of the banks…
…off of your throat in order to move on with your life and live a debt free lifestyle.
You are never going to prosper and thrive as long as you are enslaved by the bankers.
So where do you start? What can you do?
In my humble opinion… I would let the”Generals” or the professionals draw up the battle plan.
When I have a plumbing problem I call an expert plumber. Not knowing anything about plumbing, I don’t ry to fix it myself.
When I need a tune up or oil change on my car a I take it to a professional auto mechanic.
Since I am not set up or have the tools to do my own auto repairs, I let a professional do it.
You should think the same way about your debt counseling or credit repair.
Just let a credit repair specialist deal with it.
First of all by letting a neutral third party credit repair professional handle your debt problems it takes the stress and emotional issues off of your mind.
This allows you can concentrate on just creating the income that it will require to pay off the bills.
A free consultation with your credit professional will help you set up your strategy and plan of attack to get you to pay your debts faster.
This plan of attack might include any of the following:
- Getting your credit card interest reduced. By calling the credit card companies they can many times get some kind of reduction in the % of interest that you will be paying on your credit cards. Lower interest means more money to apply towards the debt.
- A debt consolidation loan. A debt consolidation loan, combines all of your debts into one payable loan. Preferably the loan will have an over all lower interest rate than what you are paying on your individual credit cards or other loans. This also makes it much easier to keep track of your payments since now multiple monthly payments have now been reduced down into one monthly payment. You may end up making lower payments for a longer period of time before coming to the end of your debt. But you will get to the end of your debt.
Tackling a Federal Tax Lien:
Tackling a federal tax lien placed there by the IRS on your personal bank account, business or property is a different strategy altogether.
The IRS will notify the taxpayer that they have filed a tax lien against you.
They will then send you a demand for payment in writing sometime, ten days after the lien has been filed.
And guess what?
The lien doesn’t come off of the property, business, or bank account until you fully pay the piper (IRS) their full amount due.
So what to do?
As they say: “You can’t fight city hall!” Or Can You?
The IRS has created a program called “The Fresh Start Program”.
By going through the “Fresh Start Program” you may be able to work out a payment plan in which the taxpayer may be eligible to have the lien removed if you meet the IRS criteria.
Well what is the IRS criteria?
Usually their criteria is payment in full. WOW such a deal!
Enter the “Offer in Compromise”
An “Offer to Compromise” allows the taxpayer to settle with the IRS for less than the full amount.
But… and this is a big but, if the IRS can collect their money faster and feel that they are only going to get so much “BLOOD” out of you anyway, then maybe…
…They may be wiling to settle for whatever they feel that they can get in the shortest amount of time.
The IRS will not accept an offer if they think they can get the full amount from the taxpayer.
Or if they think that the taxpayer can pay the full amount in a lump sum, or with a payment agreement.
Use the “Offer in Compromise Pre-Qualifyer” tool to see if you are eligible.
How About the Installment Agreement?
With the IRS’s “Fresh Start Program” if your outstanding balance is less than $50,000 you may be eligible for an “Installment Agreement”.
With the installment agreement you can pay monthly direct debit payments for up to 72 months. ( 6 years).
To apply for an “Installment Agreement” use use this “Online Payment Agreement Tool”.
What is the bottom line?
You have to assume responsibility for your life and your actions.
For what ever the reasons – and some, if not many of the reasons are “Outlier Events”
These are the unforeseen types of event that happen to people in life like:
- Medical bills
- Loss of a job
- Economy and business turn sour
- Basic failure to plan, save and live within your means.
The reality is that most people, no matter how much money people make,
spend it on their lifestyle up to the point of what they make each month.
Then when some unforeseen catastrophic event happens in their lives. “BAM”
The bills start to pile up faster than the income coming in.
This is commonly called “Keeping Up With the JONES’s”
Be smart. Don’t fall into this societal trap.
Keep up with yourself, Live a frugal lifestyle saving as much of your money as comfortably possible.
Forget about what kind of car the neighbors are driving.
If you find yourself falling behind, the worst thing you can do – is to do nothing.
Don’t go the Ostrich route and stink your head in the sand hoping and praying that things will somehow work out.
Analyse the problem. Determine where you can make improvements and or cut back.
The sooner that you take some kind of action, the faster you will see your problem(s) turn around for you.
If you don’t take action your debts and problems will just compound on you.
Start by just doing your research on how resolve your debts now.
If you think that you need professional help then by all means get a free credit consultation.
There is no shame in the game.
Reaching out to a professional credit or debt counselor is the smart and responsible thing to do.
They can at least guide you and give you some suggestions on which path to take depending on your unique situation.
You can’t live your life to it’s fullest until you are able to get free and clear of all of your debts.
Not owing anything to anyone and being free to do whatever you choose to do with your life is a very powerful and wonderful feeling.
We are not living this life to just pay bills and make some banker rich.
Once you are debt free you can flip the picture around and start to save and compound your money.
So when this Christmas comes around, don’t buy this years gifts with next years money.
If you do not have the cash to pay for the gifts then don’t buy them.
The kids will never know the difference.
You don’t want to be paying on Christmas gifts long after the kids have forgotten about their toys that you bought them on a credit card.
Keep in mind what our wise fore fathers had to say about debt:
Benjamin Franklin said the “He would rather go supperlass, than to rise in debt.”
Andrew Jackson once said that “When you get in debt you become a slave.”
And back to our good freind and third president of the United States,
Thomas Jefferson “Never spend money before you have earned it.”
To finish this article off, I would like to leave you with this quote from Earl Wilson,
“Today, there are three kinds of people: the have’s, the have-not’s, and the have-not-paid-for-what-they-have’s.”
It is far better to be one of the “Haves”, than to be one of the “Have not paid for what they have’s.”
If you feel that you would like speak to a professional credit counselor to talk about your ,
Wishing everyone a prosperous life filled with abundance.
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