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Risk: Is the myth true?

There is a correlation between the risk associated with hedge funds, and the return. If we
are given two variables that are perfectly correlated, or maybe 99% correlated, the
variables must be 100% timed. If variable A is perfectly correlated with variable B at a
given point in time, then we can say A is the correlation of B. However, this pair’s
correlation may change in time, or fluctuate on a daily/annually basis.

The correlation of Risk and reward in hedge funds are not two separate variables;
however they act as if they are in some cases. I’ll provide an example.

Variable A is correlated with Variable B at point 1.1 in time and is correlated at 95% at
1.2 in time, given the correlation is negative of course. Variable A has fundamental reasons for its change that are different than the
fundamental reasons Variable B has for its changes, therefore, a change in correlation.

This can be the same for the risk and reward of hedge funds. The risk will always be
correlated differently at different points in time. Ergo, with change in risk will result in
change in reward. This does not mean that with greater risk comes greater reward, and
vice versa, this simply means that they are symmetrical, and move together.

Hedge funds have proven to adapt, create new ideas, create demand, and in some cases
create market movement.

Debt Management Plans – A Way To Survive The Debt And Come On Top

Debt Management Plans

Debt Management Plans (DMP) is placed one step beyond credit counseling and a stone's throw short of bankruptcy. If you are too deep into debt and unable to pay them, a credit counseling agency may recommend Debt Management Plans. This is a serious step that should be considered carefully along with better money management skills and budgeting disciplines.

Similar to prescription medication that you would only take after consulting a licensed physician, Debt Management Plans should start only after you have talked it over with a certified credit counselor. Your certified credit counselor spends the time to review your financial situation, consider alternatives, and help you learn to handle money better. You want to stay out of debt after you get out of it.

What is a Debt Management Plan?

In simple terms, your credit counseling organization begins to manage your debts on your behalf through direct interaction with your creditors. They come between you and most of your unsecured creditors, negotiate lower interest rates, eliminate certain fees, arrange payment amounts and prioritize which creditors gets paid first. In short, almost everything that could be done to get you out of debt fast. These plans cover most unsecured debts, like credit card bills, student loans, and medical bills. But secured debts such as real estate loans fall outside of these plans.

Before signing up with a credit counseling organization for a DMP, verify any concessions your particular creditors offer to that organization. All these concessions from your creditors amount to one thing: lower your monthly payment and still get out of debt faster. In some cases, you will be able to pay you debts, years earlier. Ask your credit counselor how much earlier you will get out of debt if you stayed on course.

When DMP starts, you agree to send one monthly payment to the credit counseling organization and they in turn make all the payments to your creditors for you. In the meantime, you may have to agree not to use or apply for credit while you are participating in the plan.

Is a Debt Management Plan Right For You?

Cover the following with your credit counselor before you decide to participate in a Debt Management Plan.

Find out if there are other options besides the DMP available to you. Is your DMP handled by the same organization that also provides you assistance with money and budget management during and after DMP? If a Debt Management Plan is handled by one organization and another handles your ongoing credit counseling, how will you coordinate the two? Remember you want to stay out debt later.

Find out how enrolling in a Debt Management Plan impacts your credit and your credit score. Negative and accurate information on your credit record is not easy to remove despite any promises made.

Confirm what your monthly payment amount is and if you can afford it. Do not commit to something you cannot follow through.

Credit counseling organization promises concessions they can get from your creditors, such as lowering or eliminating interest charges and late fees. Confirm these with your creditors and see if there is a waiting period before these concessions kick in or do they start as soon as you enroll in a DMP.

Verify that your creditors are paid within the correct billing cycles and before their required payment due date.

Clarify the steps involved in getting status reports on your account from your credit counseling organization. How often? How detailed? Is it accessible by phone? Any hesitancy on behalf of the credit counseling organization to let you verify your account status is a big red flag that means you need to find another organization to help you.

Find out if your creditors are willing to reset the clock on your past-due accounts, wiping out the record of missed and late payments if you sign up with a Debt Management Plan. This process is called re-aging your account. How many payments should you make before your creditors are willing to do this?

What to do after Debt Management Plan starts?

Once you sign up with a Debt Management Plan, continue to be active with the process, even though emotionally, you may want to wash your hands away and stay away. DMP does not relieve you of your responsibilities; it only helps you manage it better.

Keep in touch with your creditors and pay your bills until the DMP goes into effect. If you haven’t had any negative entries in your credit report by now, any late payments, late and penalties can still be entered into your credit report.

Contact your creditors and confirm that they have accepted the proposed Debt Management Plan before you send any payments to the credit counseling organization for your DMP.

Call each of your creditors on the first of every month to make sure the agency has paid them on time and verify this by checking your monthly statements. Your monthly statement should also reflect any changes in your interest rates, waiving of the late fees and any other concessions you were expecting.

May you be granted freedom from debts both physical and spiritual.

Help for the Single Mother with Managing Credit and Debt

Today's consumers benefit drastically from the usefulness of credit. Credit cards are especially useful for large purchases, emergency situations, making reservations, identification, and protection from fraud. Unfortunately, millions of consumers abuse credit cards beyond their financial earnings. The use of credit results in costly interest payments and late fees, impulse buying, overextended lifestyles, and the unnecessary stress from harassing telephone calls from collectors.

If you answer yes to more than one of the following listed below you might want to consider getting help with finances.

Over the Limit Credit Card Spending

If all of your credit card balances are greater than 80 percent of your credit limits, you should consider this a bright red danger signal to debt.

Too Many Cards/Too Much Debt

If you stop using your credit cards and still can't pay off your combined credit card debt within one year, you should consider this a serious issue.

Out of Money

Many people are starting to use credit for small purchases such as food and gas. If you previously paid cash for these items or other small items, but are now using credit, not debit or cash, it could be a sign that there is a problem.

High Debt-to-Income Ratio

Your debt-to-income ratio measures the amount of debt you have against the amount of income you are making. You can calculate this ratio by dividing your total monthly debt payment (excluding mortgage/rent) by your total monthly gross income (before taxes). If your debt-to-income ratio is close to or over 20 percent, this is a sign that you may have a debt problem.

Emergencies

Crises and emergency situations do occur, and sometimes people are unable to afford such things such as emergency auto repairs or medical expenses because their credit cards are maxed out or the majority of their earnings are put towards debt repayments. It's always important to keep an open line of credit available for such situations or even better, having an emergency savings.

Minimum Payments

What many people don't realize about revolving credit card bills is that making only the minimum payment can take 12 to 15 years to repay. You are not applying any significant amount toward the principal if you are only making minimum payments concluding that you may be overextended and in need of putting together a spending plan.

Using Your Credit to Make Payments on Other Cards

Taking cash advances to pay bills is not a solution for paying off debts. If you are paying one credit card with another you are actually creating more debt. You will also be faced with any cash advance fees and interest from that new line of credit. Balance Transfers

Many creditors offer new credit cards with balance transfers available at low interest rates for only a limited introductory period. If you are transferring balances from one card to another, it's important to remember that after the introductory period the interest rate usually skyrockets up to 19 percent or more. As well, a growing number of credit cards are associating fees with transferring balances.

Skipping Payments

If you are late with getting payments in such as your mortgage, rent, car loan, or utility bills more than once per year and are juggling bills and skipping payments, this is a definite sign that you have a debt problem.

Borrowing Money

If you are borrowing money from family and friends and unable to pay them back while struggling to pay your bills, credit counseling can teach you how to budget or advise you to go on a plan for paying off your debts.

Debt Consolidation Loans

Are you borrowing from a new source to pay off an old debt? Many people who do so obtain debt consolidation loans to pay off all their existing bills. However, once the bills are paid off, some people wind up charging on their credit cards again. This means having to pay back the loan plus the new credit card charges, which ends up driving people into further debt. Unsure of the Amount Owed

If you have no idea how much debt you owe on a monthly basis and keep using credit cards, your financial spending might be slipping out of your control.

Now looking back on the list if you answered yes to one or more of the debt concerns, you should consider getting help managing your finances to prevent further debt.

Help for Single Mother if in Debt

Get to know your debt.

Study everything relevant about your debt such as your account balances, the interest rates, if the interest is deductible, how and when those rates can change and find out if you'll face any kind of penalties for paying an account early. If you're not sure call your lender and ask.

Next, prioritize your debt.

Divide your debts into two piles, deductible and non-deductible debt. Non-deductible debt is debt where you don't receive a tax break on the interest such as credit cards, car loans and personal loans. Deductible debt includes mortgages, home-equity loans and possibly student loans depending on your income. Once you divided your debt into piles rank them from highest interest rate to lowest.

Eliminate your debt.

You can start with your highest interest rate, non-deductible debt-or the non-deductible debt with the smallest balance. Either way, put as much money as you can toward your first debt-elimination target. Once you pay that account off, take the same amount of money and put it towards your next target. Keep doing this until you have no non-deductible debt left. Next you can start tackling your deductible debt, boost your investing, or both.

Below are some effective ways of cutting down expenses and saving money:

1) Cut down on long-distance telephone calls or make calls when rates are cheapest.

2) Cut down on restaurant and take-out meals. Prepare your own food.

3) You'll save a lot by bringing your lunch to work and packing your children's lunch. Put yourself on a lunch budget where

4) you treat yourself one or two times per month.

5) Try to reduce your home-utility bills by turning off lights when you're out of the room, being conservative with the thermostat, checking weather stripping to eliminate drafts, and air drying dishes and laundry.

6) Use your own bank's ATM to avoid fees from other banks.

7) Seek out garage sales and your newspaper's classified sections for discount purchases such as toys, clothes, and new and used items at a good price.

8) Go to matinee movies instead of the regular showings where prices are raised

9) Clip newspaper, magazine, and other print coupons.

10) Save on expensive dry-cleaning costs by purchasing a book on fabric care.

Eight Ways to Consolidate Debt

Next to winning the lottery, a debt consolidation loan is a debtor's dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.

In reality, consolidating bills isn't always easy. If you have a lot of debt, it can be hard to find a consolidation loan at a lower interest rate. And if you're not careful, you can end up deeper in debt than when you started.

Your goal in consolidating your debt should be to lower your overall costs. To accomplish this there are two things to keep in mind:

1. Get the lowest interest rate possible

2. Have a plan to pay off your debts in 3 ? 5 years.

Here are some of the best ways to consolidate:

Using Credit Cards

The good news about this method is that with a good credit rating, you may get a much lower rate than other forms of consolidation loans. And since credit card issuers don't require collateral, you aren't "risking the farm."

Call your current issuer to ask what interest rates they will offer you if you transfer balances from other cards over to theirs. Go for a fixed rate if you can get it, and ask them to waive any transfer fees. If you can't negotiate a low rate with your current issuer, try shopping for a new card at a site such as CardRatings.com. But be careful! Too many applications for credit in a short period of time can hurt your credit rating.

Once you do consolidate this way, be sure to set up an optimal payment plan so you can be debt-free in 3 ? 5 years.

Home Equity Loans

With a home equity loan, you borrow against the value of you home, minus any other mortgages. The two major kinds are:

1. A Home Equity Loan ? a fixed amount of money for a fixed period of time (sometimes at a fixed rate) and

2. A "Home Equity Line of Credit" where you borrow up to a pre-approved credit limit (interest rates usually variable) and can borrow again if you still have money available.

These loans can offer attractive rates, low payments, and the interest is usually tax-deductible if you itemize.

Many issuers offer no or low closing costs for these loans. Interest rates are often variable, however, and there's always the risk that you can lose your home if you can't pay.

Cash Out Refinance

Refinancing your home and taking out money to pay off bills (called "cash-out refinance") is yet another way to tap the equity in your home. If you can refinance at a substantially lower interest rate, you'll eliminate the high interest costs of the debts you pay off, and you could even come out with a lower payment than you have right now since rates are so low.

One option to consider: an interest-only loan. By lowering your monthly payment, you can free up money to use toward paying down other high-rate debt or building a retirement fund.

Make sure you understand the total cost of refinancing. Take any money you've freed up by paying off other bills and use that to create an emergency savings fund.

Traditional Debt Consolidation Loans

A debt consolidation loan is an unsecured personal loan, and the only collateral you are offering for the lender's security is you. Because lenders consider them risky loans, they're usually more expensive and not always easy to get if you have a lot of debt.

If the interest rate is too high to make it worth it and the repayment term is ten or fifteen years, you should probably consider another method of consolidation. However, if the term and interest rate are right, this can be a great way to actually save money in the end. (Check Bankrate.com for current averages). Remember, to calculate the total cost of the loan from start to pay-off.

Credit Counseling

Credit counseling agencies may help you get out of debt, though they don't actually consolidate your debt.

Instead, payment plans (usually with lower interest and fees) will be worked out for all of your eligible debts. You'll make one monthly payment to the counseling agency, which will pay all your creditors.

Participating in a credit counseling program generally won't hurt your credit rating, and if you stick to the plan you can be out of debt in three to six years. But be careful which agency you work with. If the counseling agency pays your bills late, you'll pay the price since you're still responsible to the lender. It happens.

Debt Settlement

Debt settlement is another option that's become increasingly popular with consumers who have a lot of debt and can't, or won't, file bankruptcy. You stop paying your bills and instead make a regular monthly payment to the settlement company. Your creditors contact them, and not you, about your overdue bills. As your accounts fall further behind, the negotiation company will settle your balances ? usually for 50% of the balance or less (including fees) depending on the debt. Most people can be out of debt in less than two years or less using these programs.

It's not perfect. Your credit rating will be hurt in the short run and you must be certain you're dealing with a reputable company or the money you pay each month could disappear. Still, for consumers who can't shoulder the burden of debt they have now, it can be a very good option.

Retirement Loans

If you have a 401(k), 403(b) plan or certain types of pension plans, you can borrow against your nest egg. (You can't borrow against your IRA.) It's easy, with no income qualifications or credit check.

The key here is to borrow against your retirement account, rather than withdraw from it early so that you don't end up paying taxes and a 10% penalty. Also, if you leave or lose your job, you may have to pay your loan back immediately or pay taxes and penalties for an early withdrawal.

These loans typically offer low interest rates, and interest is paid to you, since you are the lender. While tapping your next egg like this can short-change your retirement, so can costly debt payments. If you are in your 20's and 30's,you obviously have more time to rebuild a retirement nest egg, but even if you're in your 40's or 50's, you will want to weigh the cost of paying the high interest of the debts over time, versus borrowing from your retirement account. The return you get from paying off high-rate debts is guaranteed ? while the stock market isn't.

Rapid Repayment

There is a mathematically optimal way to pay your debts. Choose a fixed level monthly payment, and commit to it each month. Pay as much as you can on the highest rate debt first, while payment the minimums on the rest.

I almost always suggest consumers with debt start by creating one of these plans. Many people who do so find they don't even need to consolidate to get out of debt in the next few years. They just need a plan and they can do it on their own.

Overview

The biggest mistakes people make when it comes to consolidation are:

A. Not having a plan for paying the debt off after they've consolidated, and

B. Procrastination. Waiting for the "perfect" solution to come along almost always means you'll end up deeper in debt. Choose your approach, and start getting out of debt today!

Save Money When Going Out

It seems as though whenever we go out for the night, it costs much more than we originally intended to spend. Having a 'night on the town' shouldn't cost you a whole weeks salary.

Keep in mind that the amount you spend is directly related to the place you go and what you purchase. If you are attending an opera with private balcony seats, followed by an elegant candle-lit dinner . . . . plan on spending more than forty dollars.

However, many activities can be a lot of fun and not cost much money at the same time. Sure, it's nice to go out in style once and awhile, but realistically, how often can our pocketbooks afford it?

Use the following tips to help cut some of the costs when going out. These tips can also be helpful if you have children, and are looking for some lower priced outings.

How And Where To Save Money
~~~~~~~~~~~~~~~~~~~~~~~~~

You can often find local organizations and establishments offering a variety of "weekly" specials that will save you money. By lowering prices and offering special discounts, these businesses attract customers during their "down" time, or slow days.

For instance, many Los Angeles area bars and restaurants offer free midweek buffets, $1 drink specials, and even half price appetizers. And many times, these specials last all night long! Those that don't, have "Happy Hours" usually from 4-8pm offering food and drink specials ranging anywhere from $1-$5.

Granted these places won't have the typical Friday night crowds, nevertheless they WILL provide you and your date more quality time together and save you money at the same time.

There is no need to feel cheap, or tight, just because you are interested in saving some of YOUR money. Is there a law commanding that you spend $200 every time you go out?

Check For Local Events
~~~~~~~~~~~~~~~~~~

Another idea is to check with your City Hall or local Parks and Recreation center to see what's coming up. Often cities/counties sponsor a number of dance, theater, musical and visual arts events that are either FREE, or cost a few dollars for admission.

Local colleges also offer quite a number of events that cost very little to attend. Sporting events, musicals, drama and performing arts, are just a few that you will find. Contact your local colleges and see if you can be placed on a mailing list to be notified of upcoming events.

Don't forget to check the papers and the ever popular website Ebay.com!

Many times you will find ticket deals on all types of events just from browsing the classifieds/Internet. You can often find ads placed by season ticket holders, selling because they are unable to attend. This is a great opportunity to score on a deal. You may also find lower priced tickets on games that are during the week or on games that are a bit "unpopular".

Save When Dining Out
~~~~~~~~~~~~~~~~~~

If you are looking to save money when dining out, consider eating something at home before you go out, to lessen your hunger. You can then order a smaller meal or an appetizer when out. Also, avoid desserts and alcoholic beverages at restaurants since their markups are very high. This will really reduce the overall cost for dinner.

Here's an idea for a somewhat of a romantic evening. Prepare a nice candle-lit dinner at home (pasta is very inexpensive) along with soothing music and afterwards, go out somewhere nice for dessert or a nice walk around a lake or by the beach.

It Does Not Stop Here
~~~~~~~~~~~~~~~~~

These are just a few ideas and tips that can help you save money when going out, but don't stop here! There are literally hundreds of activities, places, and events to see and do that cost very little. All it takes is a little research, creativity, and a willingness to try something new.

How about camping at the beach, desert, or mountains? Not only is camping inexpensive, but tons of fun. The whole family will enjoy this weekend getaway. You can also try visiting parks and lakes in your neighboring cities and towns. Doesn't a relaxing picnic and a nice walk through scenic trails and vistas sound wonderful?

Just remember, it shouldn't matter where you go with your 'special' someone. If you really enjoy each others company, then you will have fun literally anywhere you go. You can even make it a contest between the two of you to see who can come up with the best lowest priced date. Take turns and compare the price and results afterwards. Contests are always fun especially when the two of you get to decide on what the winner gets ;-)

Five Hot Tips To stay out of Debt Forever

The financial and psychological burden of being in debt causes us and our families continuous emotional stress. That stress eats away at the quality of our lives and leaves us feeling powerless, angry, depressed and helpless.

But there is a way out ? in fact, there are five simple and straightforward ways out of debt - and if you apply this five point plan to your life today you will have taken the first step on your personal road to debt free living for life.

Before I exaplined how to get out of debt, this will now show you how to STAY out of debt.

1) Acquire No New Debt.

You have to make the commitment to yourself and your family that together you will take on no new forms of debt TODAY. Agree from this point forward that you will not take out a loan for a new car, you will not re-mortgage and cash in your equity to afford home improvements, you will refrain from filling in new credit or store card application forms and you will destroy all those credit and store cards you already have.

Break the pattern of living beyond your means TODAY.

2) Begin To Track Your Money.

Starting right now go and get the paper work for all of your regular bills, any loans, debts, credit card statements etc. and also the details of any income you receive each month from your job, any benefits you get or savings income - and put all of the paperwork on the table in front of you.

Step by step go through each one. List on a piece of paper what you have coming in each month and then list what you have going out each month ? for this one do it in two separate columns?column one should be your essential bills for every day living including your mortgage, electric, water, gas etc., and column two should be the amount of debt you have. Write down all of the money owed on each credit card, any loan amounts you have outstanding and also detail the minimum and required monthly amounts for each one.

Now you know exactly how much you have to live on, how much you have to pay out each month to live and exactly how much you have to find each month to pay debts.

Every month go through the same process ? once you have this whole five point plan in place you will notice that the amounts you owe will reduce each month and you will find it easier to afford your month to month essential living expenses. If you don't keep a track of what you spend it has been proven that you will spend up to 10% more than you can actually afford each month so your debt will grow and grow and grow exponentially forever unless you break the pattern TODAY.

3) Negotiate Better Interest Rates And Better Payment Terms.

Step 2 should've highlighted the amount you have in debt and the amount you have to pay out each month for each debt. Taking each debt at a time ? and include your mortgage in this ? look at the amount of interest you are paying on every single debt you have and also read contract small print to find out about any penalties you may incur if you pay back loans early.

Find out whether you can re-mortgage (for the same amount NOT to release equity) and take advantage of a lower interest rate and also the ability to pay off lump sums of your mortgage each year. Look at transferring credit cards to those offering lower interest rates and even 0% interest on balance transfers for a fixed period. DO NOT increase your credit limit, DO NOT use this as an excuse to add another credit card to your list! If you do find a company willing to take on your balance transfers cancel all other credit cards immediately you have paid them back. Now find out whether there are any LEGITIMATE loan companies offering lower interest rates than the companies you are already with and consider consolidating these other loans under one with a lower interest rate. Again, DO NOT use this as an excuse to take out yet another loan!

Once you have looked into any of the above ways for reducing your interest burden on your debt, if you are left with a number of credit cards or other debts that cannot be moved and thereby reduced, consider writing to your credit card company or loan company and asking about renegotiating the terms. If you don't ask you don't get! There is no guarantee that they will agree to lowering interest rates for you for a fixed period or agree to accepting a lower monthly amount if that is all you have worked out you can afford, but if you explain the situation you're in and the action you're taking they may be willing to help.

4) Create Your Debt Payment System.

Now you will have a complete picture of what has to be paid and to whom each month and exactly how much money you have to pay them. List each debt with the highest interest incurring one at the top all the way down to the lowest interest incurring one at the bottom. List the minimum amount you have to pay each month for each debt and ensure you pay it on time every month?.without fail.

Any spare money you have left at the end of the month use it to pay off an extra slice of debt number one. When that is paid off move on to debt number two and so on and so forth until, in time you will have paid off every single debt you ever had!!!

5) Continue The Pattern For Life

Once you have paid off every single debt you ever had and you have resisted the urge to take on any new debts take the extra amount you have left over each month after paying off your living costs and put it away?put it in an interest bearing account and for the first time grow your money. Get a financial safety net behind you that will protect you for life from ever having to get into debt again as the result of a rainy day, an essential new car or a much deserved holiday. And get into the pattern of enjoying every single debt free day?forever.

Start on the road to debt free living today ? take control back!

Rhiannon Williamson is a freelance writer whose articles about money matters and investing have appeared in many major financial publications throughout the world.

Bankruptcy: What the New Law Means to You

On April 20 of this year, President Bush signed a bankruptcy reform law. When this law goes into effect in October of this year, it will be much more difficult for Americans to use Chapter 7 bankruptcy to get a fresh start on their financial lives.

Under current law, you can choose to file either a Chapter 7 or Chapter 13 Bankruptcy. In a Chapter 7 proceeding, you are allowed to keep your exempt property, such as much of the equity in your home. Most of your other debts, such as money owed on credit cards, are discharged.

In comparison, a Chapter 13 Bankruptcy is a reorganization bankruptcy. In this type of proceeding you agree to pay off your debts over a period of three to five years.

The result of the new law is that fewer people will be able to file for Chapter 7 Bankruptcies and will be forced to file for Chapter 13 Bankruptcies, instead.

Major Changes

Possibly the biggest change to bankruptcy law is that there will now be a qualifying test. Under this two-part test, you will first be required to apply a formula that exempts certain expenses such as food, rent, etc., to see if you can afford to pay 25 percent of your "non-priority unsecured debt" (credit cards, medical bills and the like). Second, your income will be compared to your state's median income.

If your income is above your state's median income, and if you can afford to pay 25 percent of your unsecured debt, you will not be allowed to file for a Chapter 7 Bankruptcy.

You may be able to file for a Chapter 7 Bankruptcy if your income falls below your state's median income but you can pay 25 percent of your unsecured debt. However, if the court believes you would be abusing the system by filing a Chapter 7, you can be required to file for a Chapter 13 Bankruptcy, instead.

More differences

If you file a Chapter 7 Bankruptcy today, the court will determine what you can afford to pay based on what you and the court determines are reasonable and necessary living expenses.

Under the new law, the court is required to apply living standards that are derived by the Internal Revenue Service to determine what is reasonable to pay for rent, food, etc., and how much you should then have left over to pay your debts. The IRS regulations are more stringent and if you want to contest them, you will need to ask for a hearing in front of the bankruptcy judge. This can easily mean more time and expense.

Tougher exemptions

When you declare bankruptcy today, your state may allow you to keep all or much of the equity you have in your home. However, the new law places tougher restrictions on this exemption. So before you file, be sure to discuss this with a knowledgeable bankruptcy attorney so that you will know exactly how much of your home's equity you can expect to protect.

Credit counseling

Here's another tough restriction. Under the new bankruptcy law, you must meet with a credit counselor in the six months before you apply for bankruptcy. You must also attend money management courses ? at your expense ? before your debts are discharged.

Since the new law makes it so much tougher to declare a Chapter 7 Bankruptcy, you might think about filing now, before it goes into effect. Before you do anything, make sure you talk to a good bankruptcy attorney. Also, be sure to keep in mind that it takes a couple of weeks to file for bankruptcy. This means that if you want to take advantage of the current law, you should plan on filing at least by the beginning of September of this year.

How to Reduce Your Debt in 5 Easy Steps

If you have incurred substantial personal debt, consider these options: budgeting, debt consolidation, credit counselling from a reputable organization and working with your creditors. You will need to choose a debt reduction method that will work best for you? The method you use will depend on your level of debt, how much spare money you have, your level of discipline, and how quickly you want to get out of debt.

1. REALISTIC BUDGETING

The first step towards taking control of your financial situation is to do a realistic assessment of your income and expenditure. Work out how much you earn (your total income) and write this figure down. Then total your expenses. This is how much you spend each month for rent, fuel, food, clothing, heating, water, electricity and other bills. The difference between your total income and your total expenses is the amount of money available to pay your creditors or lenders.

Decide if there are any monthly expenses that you can reduce or live without. Focus on lowering your expenses so that you can increase your income. You'll be amazed at how many things you can do without.

a) Debt Reduction Methods

Choose a debt reduction method that fits your situation and gives the maximum benefit. You could choose to focus on repaying debts that are most important to your credit rating or to maintaining your family's safety. Or you can start by paying off those debts with the highest interest rate thus reducing the total spent on interest charges and increasing the amount available to pay off debt.

Alternatively, you could focus on paying off bills with the lowest balances. Then the money used for those payments can go to pay off other debts.

If your credit payments (excluding mortgages) exceed 15-20% of your take home pay, you can work with creditors to set up monthly instalments that are more in line with your income.

b) Credit Cards

Transfer your credit card debts (balance) to a card offering an introductory 0% interest rate for balance transfers. Make sure you keep up the repayments and then just before your 0% introductory offer is up, apply for another 0% card, transfer the balance over before you starting paying interest ? and repeat. With a good credit record, you could do this for years, moving your debt from one card to another until it's paid off.

3. DEBT CONSOLIDATION

This is when you use a new loan to pay off multiple debts. Your monthly payment will be lower because repayment is spread out over a longer period of time. This will usually eliminate the hassle of having multiple creditors, multiple bills, and multiple payments to make. It's very important not to take out any additional loans until your consolidation loan has been repaid. Borrowing against your home is a cheap way to raise money, but it's risky. If you can't make the payments - or if your payments are late - you could lose your home.

However, you could replace expensive debts with a cheaper personal loan (unsecured loan). Before taking on new debts, you might want to check out your credit history.

4. CREDIT COUNSELING

Some people are not disciplined enough to create a workable budget and stick to it. If you can't work out a repayment plan with your creditors and you can't keep track of mounting bills, consider contacting a credit counselling organization or a financial advisor. In the UK you can use free debt counselling services such as the Consumer Credit Counselling, the National Debtline and the Citizens Advice Bureau. Similar services are available in the US.

5. CONTACTING YOUR CREDITORS

A creditor is a company or person to whom you owe money. Many people struggling financially ignore debts and fear contacting their creditors. This reaction will damage your credit record. Creditors or lenders may take action against you in an effort to get payment. If you're finding it hard to get your bills paid, be the one to contact creditors. They will be more willing to work with you. Work out arrangements that satisfy you both. Explain to each lender that you aim to repay each debt in full over time, but that they must accept reduced repayments for now. Decide how much you can pay them each month and set up a debt repayment plan.

Conclusion If you're serious about reducing your debt you should stop spending on your credit cards and stop taking out new loans. To increase your income, consider finding a second job or a lodger. Claim every state benefit that you qualify for and work on cutting down your expenses. Sell stuff that you don't need on eBay or at Car Boot fairs. Put enough money aside for emergencies, but use the bulk of your savings to pay off debt. Debts usually cost you far more in interest than you gain on your savings. Also, if you have a fairly good credit record, you should transfer your debts to cheaper lenders. Finally, shop around for better deals for services and products that you use.

What is Debt Settlement

Debt settlement involves negotiating with a creditor or creditors to pay off a percentage of your total debts at an agreed upon settlement amount. Often, people choose to utilize the services of a debt settlement company rather than attempting to do it on their own. Debt settlement companies traditionally employs various negotiation strategies to help settle your debts and can eliminate between 40-60% of your original balances.

Being the president of a debt settlement company, I am often asked how debt settlement works. In order to fully understand and appreciate the process that takes place between debt settlement companies and credit collection agencies, consider the following: Creditors know that roughly 30% of the 1.5 million bankruptcies that occurred last year were on debt that was reasonably current. Traditionally, people survive by borrowing from one creditor to pay another. However, this process eventually fails when consumers run out of available credit lines and find themselves unable to make their minimum monthly payments.

If a consumer files for bankruptcy, it is very likely that the creditor will receive nothing of the balance that is owed to them. Therefore, a creditor is better off negotiating with a debt settlement company. Most debt settlement companies work with customers that have legitimate financial problems and honestly need assistance.

The debt settlement process usually takes between 12 to 36 months, so consumers can wait for creditors makes the sensible decision to agree and negotiate. Besides the obvious benefit of debt settlement, another benefit is the help with creditor harassment. Debt settlement companies normally contact all your creditors and inform them that you are working with a debt settlement company and that you are now being represented. This is very important in that it helps minimize or eliminate creditor calls. The standard practice is to direct all communication to the debt settlement company that you are working with. However, it is important to remain cognizant of the fact that original creditors can still contact you legally, but most will comply with such requests.

The most important part of debt settlement is to complete settlement process with your creditors and or collection agencies. In order to do this, it is necessary for a debt settlement company to have you sign a contract and a document that legally authorizes them to negotiate with your creditors on your behalf; this is known as a "Limited Power of Attorney." During the settlement process, you will make a monthly deposit into a "settlement account" that will eventually be used for your debt repayment. As funds begin to accumulate in the account, the debt settlement company will start to negotiate with your creditors. Once a debt settlement offer has been agreed upon, you will need to send that amount, directly from your account, to the creditor. Once the payment has been made, that debt is considered settled in full. You will no longer owe anything on that debt and the account will be closed.

Eliminating Credit Card Debt

The overwhelming task of eliminating your debts can often seem like an uphill battle. Without the knowledge and expertise of a professional on your side, unfortunately, the odds are not in your favor. In order to reduce your debt, you have several options; however, if you want to maintain a "good credit rating", you have to pay you bills on time; anything else will cause your credit score will suffer. With that being said please consider the following:

Option 1 - Consumer Credit Counseling

Consumer Credit Counseling companies were originally established to help credit card company's recover revenue from clients that were falling behind on their bills. Choosing to use a Consumer Credit Counseling service can have negative effects on your credit that last up to 10 years. These services are also considered Chapter 13 Bankruptcy by most lending institutions. The bottom line is that Consumer Credit Counseling companies work for the creditors and banks.

By using their services, you will end up paying back your full debt, plus interest. These companies do not always provide financial relief as consumers often find out.

Option 2 - Debt Consolidation Loan

Borrowing from Peter to pay Paul is no way to get out of debt. It is however, the premise behind debt consolidation programs. Debt consolidation programs require that financial institutions provide consumer loans based on items of equity. For example, a home equity loan is used to "combine" your debts into a single monthly payment, which can often take 10 to 20 years to repay depending your on financial situation. This may seem like a viable solution in the short term, but missing payments on a secured loan could cause you to lose your home or the collateral you pledged. Many people who decide to go the debt consolidation route find themselves worse off than they originally were. It is not a good idea to exchange your unsecured debts for secured debts.

Option 3 - File Bankruptcy

While bankruptcy may seem to be the most expedient method for removing your unsecured debt, it is not, by any means, the best answer. A bankruptcy will remain on your credit record for 7-10 years and seriously affect your ability to rebuild your credit. Even after a bankruptcy has been removed from your record, you are still required to disclose it on forms and applications; even applications for employment. If you fail to answer this question truthfully it can be considered a crime. Additionally, certain types of bankruptcy can require a court-appointed trustee to control and oversee all aspects of your personal estate. Bankruptcy can have an adverse affect on your credit rating and lifestyle long after the legal matters are over. This is not a decision to be taken lightly. Bankruptcy is an option that should only be explored as an absolute last resort to solving your financial problems.

Option 4 - Debt Negotiation and Settlement Programs

Debt settlement programs provide their customers with a viable solution to an otherwise complex problem. By helping eliminate your current debt, Debt Settlement programs allows you to regain control over your financial affairs and allow you to become debt free within a reasonable time frame. Debt settlement is fast becoming the only true option to financial recovery! However, I will say it again, even in Debt Settlement you have to pay you bills on time; anything else will cause your credit score to suffer.

Debt settlement is not a Consumer Credit Counseling Service or a consolidation loan. Debt settlement is a legitimate and legal way of solving your debt and credit problems without the need for bankruptcy. Detb Settlement programs were designed to lower your current debst by 40-60%. Traditionally, this is accomplished by negotiating approved payoff amounts with your creditors. A Debt Settlement program can typically be completed within 36 months or less and eliminate most, if not all, of your current debts.

What Is A Chapter 13 Bankruptcy?

Many consumers that are bogged down in debt frequently turn to bankruptcy as a form of restoring their financial status back to a zero balance. Unfortunately many of these same consumers are confused when it comes to the difference between a Chapter 13 bankruptcy and a Chapter 7 bankruptcy. This quick article will explain what a Chapter 13 bankruptcy actually is and what it does for a consumer that files this form of debt relief.

Before explaining what a Chapter 13 is I want to make sure that you are familiar with what the definition of bankruptcy actually means. It is basically a legal process that is filed in a court of law. The reason for filing this debt elimination strategy is to relieve individuals or businesses that cannot pay their current financial obligations of those same debts. This allows them a fresh start on their finances.

A Chapter 13 bankruptcy which normally runs around $185 to file is commonly referred to as reorganization bankruptcy. This form of debt elimination is filed by consumers that wish to ay their debt off between a period of 3 ? 5 years. This is a preferred strategy for individuals that wish to actually keep some of their possessions and have the means to financially meet their normal living expenses while still having money left over to pay towards their accumulated debt.

When filing a Chapter 13 the individual will present a bankruptcy petition which list the consumer's schedule of assets and liabilities. Immediately following this the person filing bankruptcy will have to present a repayment plan that is carefully reviewed by the debtor's creditors to see if it meets their needs. If there are no objections or points of argument then both the creditors and consumer filing bankruptcy must follow the reorganization plan.

Additional confirmation tests remain before a reorganization bankruptcy takes place. One of these tests compares the amount that the unsecured creditors will receive under the plan to the amount they would receive under a Chapter 7 bankruptcy. Basically what this means is that all unsecured creditors must be able to receive the same amount of monetary compensation under a Chapter 13 as they would for a Chapter 7. A final test requires that the individual filing bankruptcy must also pay all of their disposable income into the repayment plan.

A Chapter 13 is especially beneficial for consumers interested in keeping on to some very important possessions such as their home. For instance if the consumer has missed several house payments and is facing the scary possibility of a foreclosure they can effectively halt the foreclosure by filing for Chapter 13 bankruptcy. This is normally referred to as an automatic stay. This allows time for the consumer to catch up on missed payments. If the individual is unable to effectively catch up during this reorganization period then the foreclosure proceedings will continue as before.

When it comes to a Chapter 13 or any other form of bankruptcy it is highly recommended that an attorney who is knowledgeable in bankruptcy law be consulted in order to receive the most accurate information. One additional note - although a bankruptcy can restore an individual's financial status it does so with the high price of that same consumer's credit suffering a blemished record for about 10 years making it difficult to obtain future credit when needed.

Timothy Gorman is a successful webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, consolidation and bankruptcy information that you can research in your pajamas on his website.

Creating A Realistic Budget

Budgeting -- ooh, what a scary word! If you want to frighten someone whose finances are out of control, suggest that they tally up their expenses on a piece of paper. We all understand the value of such an exercise, but when it comes to the practicality of putting a budget together, we get cold feet. Budgeting doesn't have to be so painful, when you have a systematic series of steps to follow.

SET YOUR FINANCIAL GOALS

As with any other area of your life, it's pointless to start down a financial path if you don't you have some idea of where you want to end up. What is your REASON for creating a budget? Do you want to pay off your debts? Save for your kids' college education? Put money away for retirement? Make a list of your financial goals for the next 6 months, year, 5 years, 10, 25 -- all the way through to old age. And don't spend a lot of time worrying about feasibility -- if your goal is to be debt free in a year, don't think about all of the reasons why you won't be able to make it by that deadline. Just remember, where there's a will, there's a way!

CREATE THE SHEET

Start with either a sheet of legal paper -- or a spreadsheet program -- and create 12 columns. Label the top of each column with a month of the year, from January to December (duh!) Each row on your sheet will represent a different living expense -- groceries, gasoline, Starbucks coffee in the morning on the way to work. You'll have better luck remembering everything that you spend money on if you think according to categories. "Automobile" would include gas, repairs, insurance, and taxes -- while "grooming" might be divided into clothes, makeup, haircuts, and facials.

TRACK YOUR EXPENSES

How can you know what steps you need to take to reach your goal until you know exactly where you are right now? Most of us don't have a clue where our money goes -- credit cards and ATM's make it easy for money to just slip through our fingers. The first step is to create a list of STATIC EXPENSES -- things that cost the same amount every month, like rent and your car lease and student loan payments. Now these expenses are not completely "static" in the strictest sense of the word. You can reduce your rent or mortgage payment by finding a less expensive house -- and you could increase your loan payments to get rid of the debt faster. But for now, just itemize your regular monthly costs.

Next, you want to evaluate your VARIABLE EXPENSES -- those costs that fluctuate from month to month. Groceries, entertainment, utilities, and clothing all fall into this category. The great thing about variable expenses is that you control (at least to a certain extent) how much of your budget these items eat up. But some of these costs come in large and unexpected chunks -- like car repairs and medical bills. So you might need to go through your last 12 months' credit card and bank statements to get a clear idea of how much daily life costs you. And don't forget about those expenses that are paid only intermittently -- like insurance. Tally each expense and divide the total by 12, to give you a clearer idea of how your costs spread out over a year's time.

ROOT OUT MONEY LEAKS

Now I guarantee that you will not remember every expense, no matter how hard you strain your brain! Think about all of the things that you buy throughout your week without really paying attention -- snacks at work, a magazine when you stop for gas, that cup of coffee on your way in every morning. And don't forget about the expenses you are racking up because of financial disorganization -- interest charges on your credit card debt, late fees because you forgot to return that movie on time, overdraft charges because you didn't balance your checkbook. All of these fall into the category of unconscious spending. You just do it because it's a habit. And although you think that a dollar here or fifty cents there is insignificant, it can really add up.

So for a month, record every penny that leaves your hand, in the form of a check or cash or a credit card transaction. This may sound like a huge challenge, but you can do it! Make it convenient -- my husband stuck a small pencil and piece of paper in his wallet so he would be reminded to make a note every time he made a purchase. You will be stunned when you see where your money is really going! My husband was shocked to find out that he was spending almost a hundred dollars a month on that morning coffee (am I picking on Starbucks too much?!) What's your vice -- eating out when you are feeling lazy? Buying every new CD or magazine that comes out? I'm not suggesting that you completely eliminate these habits -- just that you decide how often you can reasonably afford to indulge and still reach your other financial goals.

DON'T FORGET YOUR DEBTS

It's also important that you have some idea of your liabilities -- debts that still have to be repaid. Did you figure these payments in with your monthly expenses? If you are only counting the minimum monthly payment, you will never pay your debts off. You may not be able to do it right now -- but after we get your budget in order, the goal is to pay at least double the minimum amount on at least one of your liabilities each month. You should start with the credit card or loan that has the highest interest rate -- then tackle the next highest after the first debt is paid off. And if you can afford to pay more than double, go for it. You aren't really free to start working on other financial goals until you know you are debt free.

TALLY UP YOUR INCOME

Do you really know how much you make? The tendency is to quote whatever is printed on your employment contract -- to say, "I make _____ a year." But after taxes and Social Security and any other items that are deducted from your check, what are you actually bringing home? Take a minute to really examine all of your sources of income and calculate an honest total -- you can't have a realistic budget without it!

WHAT'S THE VERDICT?

So, comparing income to expenses, how does it look? If you came out in the black, congratulations! How much do you have left over? Regardless of how small or large the amount is, start stashing it away into savings and investments! Your choice of how to proceed will depend on your financial goals -- investing for retirement will involve less liquidity and more risk than just saving for next year's vacation. The main thing to remember is that you should build your savings and investments into your budget just like a bill -- and take care of these long-term responsibilities FIRST, before other costs. That's the secret to good financial management.

Now, if you ended up in the red, we need to talk. The first step is to look at spending which can be reduced or even eliminated. Start by examining those "spending leaks" -- if they give you pleasure and satisfaction, dandy. Certainly late fees and interest charges don't fall into this category! But you can still overdo a good thing.

Ask yourself if eating out 4 times a week gives you 4 times more pleasure than doing it just once. And could you get as much pleasure if you cooked a good homemade meal? Is the ridiculous mortgage on that 10,000 square foot house worth it? Or could you be just as happy (or even happier with less financial stress) in a place half the size? Also look for convenience expenses -- things that we spend money on because we are overwhelmed, too busy, or just worn out.

Perhaps by re-evaluating how you use your time, you might discover that many of these expenses are just symptoms of misplaced priorities. When you arrive at a place where all of your spending decisions are DELIBERATE ones, you will find yourself several steps and quite a few dollars closer to a balanced budget that allows you to reach all of your financial goals.

Ramona Creel is a Professional Organizer and the founder of OnlineOrganizing.com -- a web-based one-stop shop offering everything that you need to get organized at home or at work. At OnlineOrganizing.com, you may get a referral to an organizer near you, shop for the latest organizing products, get tons of free tips, and even learn how to become a professional organizer or build your existing organizing business. And if you would like to read more articles about organizing your life or building your business, get a free subscription to the "Get Organized" and "Organized For A Living" newsletters. Please visit http://www.OnlineOrganizing.com or contact Ramona directly at ramona@onlineorganizing.com for more information.

Credit Repair - Understanding The Basics

What is Credit?

Credit means that you are using someone else's money to pay for things. It also means that you are making a promise to repay the money to the person or company that loaned you the money.

Whenever a person applies for a loan, mortgage, a credit card or for any other purpose for which he needs to borrow funds from a lending agency, the agency will check the financial credit-worthiness of the person and based upon its assessment of the financial risk involved in the deal, the agency will decide upon the terms and conditions of granting credit. A positive assessment necessitates a sound financial background and a credit history with no bad remarks.

What is Credit Repair?

'Credit repair' is a process in which consumers with unfavorable credit histories attempt to re-establish their credit-worthiness. The process usually involves procuring a credit report from the rating agencies and then taking appropriate steps to address any apparent issues such as errors, omissions, misinformation, misreporting or misinterpretation. A consumer can then formally dispute those errors or issues which unjustly distort their financial healthiness and credit-worthiness. Various laws and regulations designed to ensure legal and fair undertaking of the credit repair process can then be utilized to formally and legally start the credit repair process.

Consumers are entitled to a copy of their credit report legally, if they have been denied a credit card or loan and if the information provided on the report is inaccurate, an investigation relating to true facts is necessary for a credit repair.

Why Repair Credit?

A consumer's credit record significantly influences his future purchasing power and his eligibility of availing any credit facilities in the future. A good rating, or score, can insure a low interest rate and loans for longer term for various purposes like credit card balances, car or home loans. A poor rating makes a consumer vulnerable to finance companies charging exorbitant interest rates and imposing various unnecessary repayment and loan terms. Considering the stakes and the consequences involved, it is absolutely imperative for consumers to understand the importance of repairing their bad or low credit ratings.

The Safe and Legitimate Way to Repair Credit

Credit repair can only be achieved through financial discipline and hard work. Any easy way out of a poor credit history is undoubtedly tempting, but it may lead to further financial difficulties in the future.

If a poor credit history is due to circumstances beyond a consumer's control, and they are able to somewhat make amends to their credit records after that time, then a creditor can be requested to upgrade credit rating because of a sense of customer loyalty.

Most creditors don't trust the customers defaulting on their debts, so it may be very difficult to obtain new credit. But once a person is able to demonstrate continuing income stability and prompt payment patterns, his situation can improve in a period of two to three years. This way, even in the case of bankruptcy, a consumer is likely to be offered charge and credit cards within a year or two if maintaining a steady income.

What is most important is evaluating the financial situation. If one finds that they are unable to make at least the minimum payment on outstanding accounts, a contact should be made with the creditors. Many creditors will appreciate the willingness to pay and are most likely to help set up plans for repayment. Avoid making promises which cannot be kept as a small payment is preferable to a large payment that never arrives. Sometimes a small contact can be enough to reduce payments and forestall more severe measures.

The next step is consulting a credit counseling agency. These organizations are staffed with trained individuals experienced in the credit field. A distinction needs to be made between these and the commercial "credit repair" companies who claim that, for a fee, they will undertake credit repair.

No one can legally remove accurate and timely negative information from a credit report. But the law does allow one to request a reinvestigation of information in their file that may be inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic will do can be done by a consumer themselves at little or no cost.

The most important factor in credit repair is recognizing the legitimate and viable options available, recognizing what the scams are, and differentiating between the two. A poor credit history can make it difficult to obtain additional lines of credit making consumers fall prey to many unethical programs that target consumers with less- than-perfect credit. There are no quick fixes in credit repair. Common sense tells you that a third party doesn't know your credit history better than you. Through contacting credit bureaus, making your own corrections, consolidating your debts and budgeting, you can improve your own score. You don't need to pay someone to fix it for you. It's better to apply that money towards discharging your debt.

Are You Beating Up On Yourself About Debt?

When you hear the word "debt", whats the first thought or feeling that comes to you? For most people debt is "bad" or it becomes the "enemy" and is something that should be avoided like the plague.

Having debt does not make you a bad person. The more a situation is judged as being bad, the worse it gets. It's the judgement that you have around debt, that will keep you feeling "stuck". It's the judgement that brings out the anxiety, the fear, the stress, the knot in the stomach.

It's the old success principle: what you focus on expands. So what are you focusing on? Getting out of debt is an inside job first! What that means is taking 100% responsibility for your debts and admitting to yourself that you have an obligation, and knowing and believing that you will fulfill that obligation, by paying your creditors as quickly as possible.

No one wants to be stressed, or worry about living beyond their means. Most people are very uncomfortable talking about the subject of money and debt. And since the subject of money management is NOT normally taught in schools, where do we learn about it?

From our families, friends, co-workers etc, tv shows. These are people who mean well, and it's been my experience that they are usually passing along information that may be outdated, and no longer relevant for the times that we currently live in and may or may not apply to you and your life. It is THEIR opinions and beliefs.

Once again it doesn't make it a "good" or "bad" thing. The answer is to find a solution that "works" for you and your particular situation. Keep in mind, that once you decide to become debt free, it will become crystal clear that not everyone thinks that becoming debt free is a good idea.

Everyone from your local bank to your grocery store, want you to buy on credit. Realize that "credit" is a tool that can serve you, or NOT serve you. Here are some tips for becoming debt free.

1) Admit that you have debt, and are willing to become debt free. This is the most important step and is part of being 100% responsible, and being open to finding a solution. Without knowing where you are now, you are probably not going to be able to plot out a plan or map to where you want to go.

2) Don't add any more debt. This is all about changing habits, beliefs, and attitudes about buying on credit. Your attitudes about money/credit may have served you up to this point, and the good news is that you can now make new choices that support you. Remember "life" happens and there may be times when you may have to use credit. If this should happen DON'T beat yourself up. Just continue down your path of debt reduction and the ultimate goal of financial freedom.

3) Start to pay off the debt NOW. This seems like an obvious and simple step, and it's simple to do and also simple NOT to do. Afterall we are human beings, and change is not something that we are very comfortable with. Put all your debts on paper, so that you are clear about what you owe. One of the best strategies to debt reduction is the "something-something" principle. Focus on paying (1) creditor off at a time. This will keep your energy concentrated, and your debt reduction efforts will be more effective, than trying to pay off everyone at one time.

4) Take "extra" money and apply it toward your debt. Where can you get the "extra" money? Start to watch where you spend your money. For example: using coupons, or shopping at a warehouse club, can save you thousands of dollars over the course of a year. These savings can be used to pay down your debt quickly and effortlessly.

Keep in mind that your past doesn't equal your future. Look at your current financial situation as a "learning" experience, and an area that you are able to improve on....versus a place that you are judging yourself for a mistake. Many people just like you have been able to eliminate their debt. The good news is....so can you!!!!