October 30th is National Get Out of Debt Day. How are you doing at getting rid of your debt, if you have any at all? Is your level of debt increasing, or is it decreasing? I have been slowly paying down my debt over the past few years. I am debt-free when it comes to credit cards and credit-lines, but I still have a secured auto loan which I need to pay off and a few student loans which I’ll start repayment on in about two years. I hope that you are all doing as well, if not better than I am, at taking care of your debts.
For those who might be struggling with debt, whether it be from a mortgage or credit cards there is help out there. While making the rounds today at the different financial portals (yahoo finance, cnn, msn, etc) I noticed that MSN sponsors a credit counselor message board. They also have a short article posted on how to contact credit counselors, and what services they can typically offer. That article can be viewed by clicking here.
If you have any success stories for getting out of debt or at least overcoming significant amounts of debt then I’d love to hear them. Please send me an e-mail or just post a comment with your story!
4 responses to “National Get Out of Debt Day”
I did not know that 10/30 was that type of day. I will have to mark it on my calender for next year.
All it takes to fall behind on credit card payments is one month of expenses that exceed your ability to pay. Suddenly, you’re in debt. Many people feel overwhelmed at the first sign of trouble. After all, how do you pay bills with money you don’t have?
People who seek debt counseling are new to this type of financial hardship, and they are embarrassed and uncomfortable. The worst thing someone in debt can do is ignore it. Fortunately, there are constructive steps you can take to turn your finances around and get out of debts. They are as follow:
> Make a solid plan for attacking your debt.
> Keep only one or two credit cards.
> Make your payments promptly.
> Cut out luxuries and extra items you can live without.
> If you own a home, look into a home equity loan or line of credit.
> Renegotiate the terms of your loans with your creditors.
> Borrow against your life insurance or the savings in your 401(k) account.
Are you kidding?
What kind of an expert tells you to get a home equity loan to stay out of debt?
Why or how would you even consider borrowing against your life insurance unless you are also advocating the type of life insurance that builds equity? Life insurance that builds equity is the worst piece of advice you can give someone. People, in order to stay debt free or to be debt free you have to live within your means. Do not spend like a drug addict. Be thrifty. Be wise with your money. Don’t spend money that you don’t have. Stay away from credit cards. If you have to have a credit card, go through a credit union. The credit card should have no annual fees, low interest and you should pay it off every month. Do not borrow against your investments, life insurance, home, car, or any other property or thing. Keep your incometax exemptions in line with the number of exemptions you claim at the end of the year. You should not be getting a large tax return since this means that you gave uncle sam a interest free loan with your money. If your exemptions are correct and you get a small return at tax time, then you are using your money to the max. Always look for ways to save money. Use coupons. Drive a paid off car. Keep your insurance coverage at a minimum for the value of the car. Keep enough life insurance on your famaily to take care of them and to pay for funeral expenses.
I hope this helps.
I’m not sure what you’re talking about with talk about taking out a home equity loan to stay out of debt. Nonetheless you are correct in that people should live within their means to stay debt free.
Thanks for the comment!