My Debt Relief Plan

A Good Debt Elimination Program Starts with a Budget

Debt is a financial disease that is affecting a vast majority of middle class Americans today. Many find themselves living pay check to pay check each month and wondering where all the money went while their level of debt keeps getting higher and higher. Those who are successful with money have one thing in common; they control where their money goes and how it is spent and they do this by using a budget that tracks every last dollar they make and spend.

If you are one of those people who find yourself in financial hardship then you need to start a debt elimination program that is built around a personal budget. The reason for this is simple, if you know how much income you have and how much your expenses are each month you can make adjustments to your spending habits to bring your spending back into line with how much you make. A budget is the first step to taking responsibility for your financial future and for most people that means eliminating debt.

While creating a budget can be a scary proposition because of what it might show it is a necessary part of any good debt reduction plan. The truth of your spending habits staring back at you from a sheet of paper isn\’t fun but it is the quickest and easiest way to get started.

By writing down your income in one column and your expenses in another column your financial picture will soon come into focus. Be sure to leave nothing out because you want a complete picture of what your money is doing. Add up both columns to see if your income is keeping up with your spending. If you are like most people who are suffering the effects of overwhelming debt you will find that your expenses are probably much greater then your income and the biggest bulk of this may well be the monthly payments on lines of credit you may have that can include a mortgage, car loan, students loans, and credit card debt.

Because of this you may want to make a separate spreadsheet that lists all your outstanding debts owed to your various creditors. Make a column for each of the following categories; name of creditor, balance owed, interest rate, and interest being paid each month. Add up the numbers in the balance owed and interest being paid columns and write it down at the bottom. This will show not only how much debt you owe in total but also to each individual creditor.

This will allow you to come up with a game plan to start paying back these debts and work your way out of the financial hardships they have caused. Because money can be an emotional issue one of the best ways to stay motivated is to start with your smallest debt and get it paid off first. This will give you a good feeling and keep you moving on to the next highest debt until it is paid off. Keep working your way up until you knock out that biggest debt.

By starting with a budget outlining all your income and expenses your debt elimination program will soon have you back on your financial feet. You will have much greater financial freedom once the heavy weight of all that debt is no longer on your back.

If you are serious about reducing debt and want more information about a Debt Elimination Program please visit the website Debt Reduction and Consolidation by Clicking Here.

Add comment January 2nd, 2008

Bankruptcy Services - Understanding Your Options

Bankruptcy services aim to stop the sinking ship and help you avoid being forced to file bankruptcy by providing the opportunity to move your collections through a logical and effective progression of payment requests. These services are not generally covered by legal aid, nor are the cost covered by any government agency.

Bankruptcy is a legal process which can relieve you of most, if not all, of your debts. For the majority of people bankruptcy is something they think won’t affect them, but in this day of ever increasing consumer spending, easy availability of credit cards, and increases in interest rates, the concept of personal bankruptcy is beginning to loom large on the horizon. Bankruptcy law is very complicated in nature, and you should always consult with an attorney before you take any action. The laws differ from state to state, with mounds of legal paperwork to complete, so be sure that the lawyer you select is an expert in this field.

Individuals will normally choose between filing a Chapter 7 and a Chapter 13 bankruptcy. Chapter 7 is the type of bankruptcy used when you do not have the ability to pay off your existing debts. Under the new law, bankruptcy applicants who wish to file under Chapter 7 must meet certain eligibility requirements under a “means test”. Under this test, if your current monthly income is less than the median income in your state, you can file for bankruptcy under Chapter 7.

Under the new laws, individuals wishing to file bankruptcy under Chapter 7 or Chapter 13 must show their proof of income by providing federal tax returns from the last tax year. If an applicant is ineligible for filing under Chapter 7, he or she must file under Chapter 13 instead. There are differences between Chapter 7 and Chapter 13, but the main distinction is that under Chapter 13, the debtor enters into a five year repayment plan in which he or she must pay a certain amount of money to creditors, based on an expense to income formula.

A bankruptcy judgment is recorded in your credit history and remains there for seven to ten years, depending on the type you obtain. People in bankruptcy can still obtain credit as a number of banks now offer “secured” credit cards, where a debtor puts up a certain amount of money in an account at the bank to guarantee payment. Usually the credit limit is equal to the security deposit given, and is increased as the debtor proves his or her ability to pay the debt.

Online services are also available to help you guide through the intricacies of the process. These services help you determine what form you should pursue and are usually provided on a low flat fee basis. The number of these services is increasing to satisfy rising demand, so if you are even considering bankruptcy as a way to free yourself from an overburdening debt, then it’s probably a good idea to see what types of services are available and what they can offer you. Using bankruptcy services, with the help of knowledgeable and experienced debt relief counselors, can make things a lot more manageable for the distressed person.

AARON H PRATHER owns and operates http://www.bankruptcyservices101.com a site covering information regarding bankruptcy and consolidation services and debt elimination. Bankruptcy Services

Add comment January 2nd, 2008