It’s Time to Get Rid of Your Debt. Here’s How…

Another year has passed and it is a time for reflection and planning for a new year. If you are like me, one of your New Year’s resolutions may revolve around improving your finances and more specifically around debt. If your goal for 2008 is have less debt or no debt at all, then you are reading this at the right time? Why? Because this year you can actually achieve this resolution if you put a firm plan into action.

Lawrence Goldberg, the Credit Card Magician, recently shared his insights at one of JASI’s events during which time he shared some valuable tips and answered callers’ questions on debt reduction and elimination. If you missed the teleseminar, here is a quick recap of Lawrence’s valuable advice.

Q: I want to eliminate all of my debt. How do I get started?

A: To get started, first you must have the right mindset. First be thankful for your debt and what it has provided. What did you debt buy you? Did it pay for your children’s tuition? Did it provide you with a dream vacation with your spouse? Chances are you incurred debt to acquire or achieve something. The idea here is to focus on what your debt did for you that was positive. Once you have figured out what you debts provided, it is time to become bigger than your debt. Look at both your debt AND your assets. Know what you owe and what you have. If you have a lot of debt chances are you have a lot of stuff. By taking a look at the larger picture you can become bigger than you debt and put yourself in more powerful place.

 

Q: How can I pay off my debt when I am living paycheck to paycheck?

A: Know every detail about your debt and take a look at your assets. It’s not a zero sum game. Here are a few tips to try out.

• Try going frugal for a month to figure out lifestyle changes that affect spending. For example, instead of spending money on a gym membership, exercise outside.
• Try lowering the interest rates of your credit cards. Your minimum payments will put more money towards your principal and less towards interest.
• Figure out how you can increase your cash flow to pay down your debt. Search for a higher paying or second job or take another look at your assets. You may have assets that you can sell.

Quick Tip: Read the chapter on going frugal for a month in the Maxed Out Credit Card Game for more tips.

Q: Is debt consolidation a waste of time and money?

A: If bankruptcy is your only option, then debt consolidation may be for you. However, be wary of bad operators particularly on the internet. There are a few consolidators that work with credit card companies, but it will devastate your credit. Consolidation rates are usually around 8-10% so treat it as a last resort. Instead transfer your balances. You can get your interest rate down to 4% or less.

Quick Tip: Read Balance Transfer Magic to learn more.

Q: How can you win with credit card companies?

A: Credit card companies are masters at screwing around with you. Before committing to the great 0% limited time offer, read the fine print and work out exactly what you are getting yourself into. There are many ways to take advantage of their opportunities. You just have to know how to play the game.

Quick Tip: Spring is usually the best time for good offers. Even if they are not great, it may be better than where you are now.

Read more about Lawrence Goldberg purchase one of his books at www.thecreditcardmagician.com. Use the promotional code “transform” and get 25% off now through December 31^st! And tell him JASI sent you!