The majority of people are not so fortunate.  We learn early in life that if you don’t have credit, you are going to have trouble obtaining loans for homes, cars and to further your education.  Unfortunately, once we are given credit, we are not given instructions to manage it; therefore, we over-extend ourselves, and become a slave to debt.  Making a plan for paying off debt, and seeing it through will help you achieve freedom.

 Paying Off Debt Starts with Organization

 The first step to paying off debt should start with organization.  Make a list of unsecured debts and list them according to percentage rate, highest to lowest.  Are you behind on any of your cards?  If so, make the debts that are past due your priority.  Past due accounts will be a weight on your credit report and will cause you the most stress.  List the accounts that are current in order from highest rate to lowest and temporarily set aside, but keep making your payments!

Many americans are drowning in debt and the collection calls seem to be getting worse. There is hope! First you need to realize the problem and then make a plan one that actually works…Eliminating your debt will not be easy however you will feel empowered when you apply the techniques in this article.

You can’t wait for things to improve with the economy. If you think your government is going to give YOU some kind of bailout like they did the banks you have another thing coming…it’s called bankruptcy. Well, that’s if you can even do that. You see the laws now favor the creditors and they knew that there was going to be a melt-down in 2005 because that’s when bankruptcy reform went into law designed to protect creditors.

The best way to get out of debt, in essence, is going back to the old ways taught by your grandparents. Don’t spend what you don’t have i.e. going in debt, and live with your means. So what you need to do is start cutting the fat, look for all of the things that are draining your bank account. Ask yourself is this a want or a need on anything you’re purchasing until the debt is gone.

Banks have lost billions in revenue due to federal government changes that have reduced or eliminated fees that banks can charge when consumers use their debit cards to make purchases, and also restricting overdraft fees.  They may have lost the battle, but they will ultimately win the war.  Bank of America also has pre-paid debit cards that are issued by some states to pay out unemployment benefits.  If you choose a Bank of America ATM, you are not charged a fee, but many small communities do not have Bank of America ATM’s.  These folks are being charged to withdraw their unemployment benefits.  Kick a man when he’s down!

Bank of America and many of the large banks are going to start charging other fees to make up for their recent loss.  These fees could include charging you to go to your teller more than the allotted times given per month/week.  They could also begin to charge for using your ATM more than the times allowed per month.  Consumer Beware!

People are going to start going to extremes to save themselves from these excessive fees.  We are going to go back to the days when people didn’t trust banks and stashed their money at home.  This is not a good option, but in truth, we are all so oppressed by this economy that drastic measures are being taken.

My advice is to look into alternatives.  Many communities have credit unions.  Credit unions are member owned and typically have less fees and more liberal lending policies.  Best of both worlds!

The quickest way for your home to lose heat is through old windows.  When you are trying to save money, the last thing you want to do is shell out thousands of dollars for new windows.  If you have storm windows, install them and caulk around them.  If you don’t have storm windows take a trip to your local hardware store and buy indoor plastic window insulating film.  This film is inexpensive and very easy to install (only tool required is a hair dryer).

Until recently, there was nothing protecting the consumer from debt settlement companies who were charging upfront fees, and then not delivering.  The FTC has since made a ruling which does not allow a company, other than a law firm, to charge upfront fees.  This ruling completely disabled the companies from pulling a fast one on the consumer, and gave reputable debt settlement companies and law firms a legitimate way to settle consumer debt.  A non-attorney debt settlement company can still charge a fee, but only after the debts have been settled.  An attorney based company can charge upfront fees because the law protects both the law firm and the consumer.