How You Can Have Debt Elimination Success

Your Debt Elimination Mindset

Are you drowning in credit card debt and want the success of debt elimination?

According to statistics, consumer debt for Americans is now averaged at approximately $10,000 per person, not including home mortgages.

These are staggering statistics.

For many single moms, debt has become a crisis.

A vast number of people overall, have adopted faulty reasoning when it comes to purchasing goods and services.

If you can afford the payment, you can afford the item.

What many of you are discovering is that you cannot afford the item on payment.

Are you aware that credit card companies are notorious for luring in new customers with low rates, and then raising those interest rates to astronomical levels when a payment is late or missed.

Credit card companies and banks can raise your interest rate even if you are late paying an unrelated bill.

They can simply declare you to be at risk, thus justifying a higher rate.

Remember the Rule of 72.

Just divide the percentage of interest you are paying into 72 and you will find the amount of years it will take for your debt to double.

At interest rates of 18 percent and beyond, the time debt takes to double is very short.

It is clear that debt elimination can never be achieved while paying exorbitant rates of interest due on credit cards.

Debt Elimination Must be a Priority

Debt elimination must be a priority if you are to gain control of your finances.

Here are several key steps that will lead to debt elimination.

First of all, you must make a commitment to stop buying on credit.

I highly recommend you undergo “plastic surgery.”

By that I mean you cut up your credit cards or melt them in a oven set at 400.

If you lack the self-control necessary to cease buying on credit, you must get rid of your ability to do so.

Cut Up the Credit Cards for Debt Elimination Success

Many single mothers argue that they must keep at least one credit card for such necessities as hotel and airplane reservations, gas purchases, and so forth.

That's what credit card companies want you to believe, but it isn't true.

From my own experience with debt elimination, I do not have one credit card to this day because a debit card and/or prepaid card works the same way a credit card does, without using borrowed money with ridiculously high interest rates.

All banks issue debit cards that will accomplish all of these matters, and the money is drawn directly from your account as opposed to being placed on a line of credit.

If you have the discipline to use a credit card and pay off the entire balance each month, then you may find it an advantage to do so.

In essence, you are using the credit card company’s money as a free loan for 28 days.

You must pay off the entire balance within the grace period or finance charges will obliterate this financial advantage.

By creating multiple sources of income online, there will be no need to have credit cards.

Secondly, if you currently have consumer debt, you must adopt an aggressive strategy to pay off those bills.

I recommend you create an debt elimination worksheet.

On your worksheet, you list your debts, excluding home mortgages, in the order of smallest to largest payoff balance.

For now, do not consider interest rates or other factors.

Just list your debts small to large.

Once you have your debts listed, continue to pay the minimum payments on all your debts to keep things current, except for the smallest ones.

Instead, focus all your financial resources on eliminating that bill.

Every extra dollar you can find should go to paying it off.

Have a yard sale, get a part-time job or develop a home business, and focus your attention like a laser on paying off that balance.

Once that bill is eliminated, move to the second smallest and do the same.

You will now have the added resource of the money previously given to the debt you have paid off.

In this way, you will move through your debt, building larger payments and greater momentum as you go for debt elimination success.

Do not stop until every debt on your list is paid.

That is exactly how credit-counseling agencies instruct you to do it too.

I know, because I’ve been there.

Resource for Debt Elimination Success

Related:  Dave Ramsey, in his best-selling book,The Total Money Makeover, describes the benefit of a Debt Snowball.

Lastly, most debt can be avoided if we learn to live within our means.

That takes self-control.

Self-control is an absolute fundamental for wealth, growth and freedom.

Commit today to control your spending.

Refuse debt.

In my case, I prayed and asked God for creative ways in which I could increase my income for debt elimination.

You can have debt elimination success.

You can do this!

Begin today and you will be one step closer to the dramatic wealth-building opportunities that come when you have achieved debt elimination success.

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Tonza Borden

A Quick Way To Deal With Credit Card Debt

Find Funds to Pay off Credit Card Debt

Contrary to what many people hope, credit card debt doesn’t go away without effort.

And, winning the lottery isn’t a solution you can count on to pay off credit card debt.

So, what should you do when you fall behind and debt threatens your financial health?

First, let your lender know you’re having problems paying off credit card debt.

If you’ve been reliable in the past, they usually understand a temporary setback.

The first thing, of course, is to change your spending habits.

Discipline yourself to give up unnecessary expenses so you’ll have funds to pay off your credit card debt.

Then, go to work to get your head back above water.

• Sell off investments. If you catch it soon enough, you may be able to cash in some of your assets and pay off credit card debt before it gets the best of you.

• Rearrange your debt by paying it off with a home equity loan, which I personally don't recommend because that would be borrowing your own money. However, you’ll lower your overall monthly payments because the interest rate on a home equity loan will be lower than interest on credit card debt, and you’ll reduce your tax bill since the interest on a home equity loan is tax deductible. 

• Create extra income. I suggest you find ways, from part-time to full-time work or start an online business such as a niche blog, to earn additional money and use it exclusively to pay off your credit card debt.

File Bankruptcy to Eliminate Credit Card Debt as the Last Resort

Bankruptcy is not pleasant, and it takes years to get your credit rating back, but it will get you out of credit card debt.

Get Credit Counseling to Get Credit Card Debt Relief

Bankruptcy is normally sought only when your credit card debt exceeds your annual income and is multiplying faster than you expect your income to grow.

Credit counselors provide credit education, counseling, and help you get better terms with your lenders.

This is a proven resource that I have personally used.

In severe cases of credit card debt, they can set you up on a Debt Management Plan, which you pay them monthly and they distribute the funds to your creditors.

With a few exceptions, personal bankruptcy basically takes all you own, applies it to your credit card debt, and lets you off the hook for what’s left.

Consider bankruptcy to eliminate credit card debt if your creditors sue.

If you need outside help, I also recommend contacting the National Foundation for Credit Counseling at www.nfcc.org.

Tired of the debt lifestyle?

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Tonza Borden