Eliminate Credit Card Debt

Credit Card Debt

Credit card debt is a result of that wonderful sense of power those small pieces of plastic can elicit. It’s like having a benevolent Santa Claus in your pocket whose sole purpose is to deny you nothing.

“Wow, I can have anything I want!” you crow, which is true up to a point, usually your credit limit.

The problem is that eventually you’ll have to pay for it, and if you don’t pay the total due in one lump sum, that awful credit card company will begin to charge you interest. It’s often the beginning of the end of your control over debts.

Finally, when things get really bad, you start to look for solutions. Here are some of the most popular options:
Cutting Up Your Credit Cards

There are two main points of view on this:

One is that if you can’t keep control of your credit card spending, you should cut up your cards and make all your purchases in cash or by check.

We have two objections to this strategy:

  1. Carrying large sums of cash in your purse or wallet isn’t very practical. Nor is it safe, if people with dubious scruples happen to notice your bulging wallet.
  2. You can lose track of your spending if you use cash. If you have a tendency to lose receipts, you may not keep track of what you’ve purchased, knowing only that the cash has disappeared. Credit cards provide you with an automatic record of your spending, and you can use this to discover where your money actually goes. Then you can take steps to change your spending patterns.As for checks, many merchants are now reluctant to accept checks as payment. And the onus is on you to balance your checkbook.

For better or for worse, plastic has become the accepted method of transacting business in the retail market place. You can use it to ruin your financial life or you can learn to use it as an ally.

Handling Credit Wisely

The second approach to handling credit card debt is to change the way you use credit.

Many people keep credit cards as an emergency line of credit. They have one or two cards with high credit limits and use them only when they need to purchase an asset and their other funds are temporarily unavailable.

So you might use your credit card to purchase shares or towards a payment on a property, as long as you can justify the interest payable before you repay the funds. If you can pay the balance in full before the interest-free grace period expires, so much the better.

You might choose to set aside two credit cards with the best credit limits and interest rates for that purpose. And if you are in debt, you can elect to cut up the rest, especially store cards. The one exception might be a card with a low credit limit, to be used exclusively for your regular monthly purchases.

Using A Debit Card

If you have a onging problem with credit card debt, debit cards can provide a safer alternative. They look and function the same way as a credit card, the difference being that you deposit the funds to the card before you start spending, so you’re actually spending your own money, not that of the credit card company.

Some debit cards come with an extra $400 credit limit ‘for emergencies’. The only condition with regard to using these credit funds is that you must pay them in full each month. Like the regular debit card, this also forces you to stay within your budget.

If you wish to use a card with a credit function and pay it in full monthly, calculate your regular monthly expenses and apply for a card with an appropriate limit (within $100 of your estimated expenses).

Using a debit card is really simple way to keep control of your monthly maintenance spending. You can get a second card on the same account for your partner, if you think this won’t become a source of friction.

Eliminating Credit Card Debt

There are two primary systems for getting out of debt.

The preliminary step is to make a list of your debts. Then stop using all credit cards except one (preferably a debit card) for monthly maintenance expenses.

Read the scenarios below to determine which strategy you’ll utilize.

For convenience sake, in this example we’ve used small rounded figures. There are 9 separate debts totaling $13,500, listed from the largest to the smallest. Each has a different interest rate and a different minimum monthly payment. The combined monthly payments are $350. The figures are totally arbitrary and bear no resemblance to actual interest rates and minimum payment rates.

$5,000
17.35%
$105
$3,000
19.25%
$75
$2,000
15.75%
$55
$1,000
12.5%
$45
$900
14.75%
$30
$600
15.5%
$25
$500
18.35%
$20
$350
7.75%
$15
$100
12.5%
$10

To begin your debt elimination campaign, add 10% of your income to the $350 you normally pay on these debts each month. Let’s say that 10% of $3,000 per month works out at $300.

Here are your choices:

  1. You can start paying that extra $300 towards the credit card debt with the highest interest rate.In our example, that would be Debt #2. It will take you roughly 11 months to pay it off at $405 per month ($105 + $300). Once it’s paid, you can pay the $405 towards the debt with the next highest interest rate – that would be Debt #7. That would probably take you less than 2 months to clear. Then you move to Debt #1 (the big one). Not very exciting, is it? Like watching paint dry.
  2. Let’s try an alternative, this time going from the smallest debt to the largest.
  3. Month 1: You take $90 of the extra $300, add it to the $10 you usually pay and wipe out the smallest debt (Debt #9). The other $210 goes towards Debt #8.

    Month 2: Your extra $300 becomes $310 because you’ve added the $10 you usually paid towards the recently eliminated Debt #9.
    Take $130 from the $310 and wipe clean Debt #8.
    The other $195 goes towards Debt #7.

    Month 3: Your extra $310 has become $325 because you’ve added the $15 you usually paid towards the recently eliminated Debt #8.
    Wipe off Debt #7 by paying approximately $270. The other $55 goes towards Debt #6.

    Month 4: Your extra $325 has become $345 because you’ve added the $20 you usually paid towards the recently eliminated Debt #7.
    Pay the whole $345 towards Debt #6, leaving a balance of $175 still owing. You’ll wipe this out next month.

You get the picture. This method seems easier because you’re getting little wins along the way. And they occur within relatively short periods of time, which helps keep you motivated. The bills arriving in the mail each month drop from 9 to 8 to 7 within 2 months.

This also gives you the incentive to add in a few extra dollars when you see the opportunity to wipe out a bill in one fell swoop. You can decide to forgo a purchase or outing that can be postponed for a month or two just to get rid of another millstone. You will pay a little extra interest this way but the motivational aspects outweigh the negatives.

Money Attraction Made Simple

Use Subliminal Messages To Triple Your Money Attraction Outcomes

Perhaps you have used subliminal audio for success in a few areas of your life but nonetheless can’t quite understand how money attraction works?

It Won’t Do This

Like a number of other areas of development when using subliminals it is important to note that you will most likely not wake up with a mysterious check in the mail the morning after using a money attraction subliminal.

There are a lot of stories about people receiving mysterious checks through the mail or coming into massive sums of money out of the blue – either when listening to subliminals, or when using some kind of tool to help them with the law of attraction. This sadly is rare, and is the exception, as opposed to the regular result.

In reality money attraction is more of a gradual process, and works better over a few days and a few weeks than the instant you commence listening.

How Subliminal Money Attraction Really Works:

Again it is a gradual process and is designed to change your thoughts and beliefs about money and align your subconscious mind to focus on bringing money into your life.

This is why it takes different lengths of time for various people – some people have a lot more worries and mental blockages about money.

It works in 3 very simple ways:

  1. To focus you positively on money. To stop you from worrying about the money you don’t have or the money troubles you are in and to help you get started thinking more positively about money.
  2. To align your subconscious mind completely to your money attraction goals. Your whole mind and body will be completely aligned on bringing money into your life – making it much more probable to occur.
  3. To ultimately make you believe more than ever in the law of attraction. Not only that, but to make you fully believe 100% that you can attract money into your life – that you can make the law of attraction, and money attraction work for you.

Get started today using the world’s most powerful money attraction subliminal audio album.

Or if you are new to subliminal audio you may also get started free of charge:

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Inner Game of Money

So what is blocking you from achieving your financial goals  and creating more money in your life? Most of us don’t know about the inner game of money which is our relationship with money. That’s right your relationship with money. How you view money and your beliefs around money could be blocking you from having more money come into your life. It is not about getting another job or getting a raise at work but it is about your belief about the kind of money that you want.

If you believe that people that have a lot of money are evil or step on people to get money or use people to get money but yet you want to be one of those people with money, do you see the conflict there.  You want to have a lot of money yet your beliefs about people with money go against your core values. So what do you believe about money and about your relationship with money.

What are your rules regarding money

So what are your rules regarding money? Most people don’t know their rules about money or even give it consideration. By default, they have rules however. What do I mean by rules? Here is some suggestions:

  • save 10% of my income each month or a set amount
  • never use credit cards
  • always pay off credit cards each month if I use them
  • my outgo always must be less than my income
  • live on 80% of my income
  • never buy things impulsively
  • invest for long term and retirement
  • have a budget
  • save for big ticket items and pay cash

Those are just some examples. Most people never consider any rules. You should have rules in place to Master Your Finances. You want to become a master of your finances.

Finances and money are one of the biggest contributors of divorce. If you are married you need to communicate and come up with your own rules as a couple for money. Lack of money and debt is a big contributor to a lot of stress in your life. By becoming a master of your finances you can help your marriage and also have a lot less stress in your life as well. That is why I created the Master Your Finances program to help people get out of debt and have less stress in their lives. You can check it out on this site.

So if you don’t have any rules regarding money then you should make time to make some. If you are married you need to do this together. Then you need to follow your rules. This may be difficult at first to follow your rules, but anything new seems different at first. Before you know it your new rules will become automatic and a good habit.

Ideas for Couples and Money

How to Talk the Talk

Psychologists say that many people will talk about anything, even sex, before they’ll talk about their finances. Why is it so difficult for us to talk about money? Perhaps because money symbolizes different things to different people: power, control, security, or love, for instance.

It’s been estimated that money issues are the driving force in 90% of divorces, but you CAN live happily ever after, financially speaking, if you work at not letting financial issues come between you and your partner.

 

In her book “Talking Money,” Jean Chatzky, columnist for Money magazine and regular contributor to the Today show, offers practical advice for talking to your spouse or life partner about this emotionally charged issue, including these tips for twosomes:

Find a Neutral Time

Don’t wait until your spouse has charged up a storm on the credit card or another hot financial issue arises to broach the subject. The goal is to have a calm, relaxed discussion when there’s no particular money issue at hand.

Give a Little to Get a Little

Volunteer your own feelings about a financial issue and it may encourage your partner to do the same. If your relationship is the first priority, you’ll both have to be willing to negotiate. Share your feelings, experiences, and hopes about money. Discuss how your parents dealt with money, what it meant to you when you were growing up, and how you dealt with it in past relationships.

Know Where You Stand

Be honest with yourself about how you feel. If you’ve always been independent, for example, it may be hard for you to be “taken care of” financially. If you have more assets than your partner, you may feel fear about risking your hard-earned money, or resentment if his or her spending habits are not good. You have to be honest with yourself about these feelings in order to be honest with your partner.

Bring in a Third Party

If you can’t seem to talk about finances, seek out a counselor to help you sort through your financial issues. This could be a financial counselor or a therapist or marriage counselor.

Do’s and Don’ts for Couples

Chatzky also offers these do’s and don’ts for merging your finances:

  • Track Your Spending

Knowing where your money is going is the first key to financial security, and keeping a budget, which includes tracking your spending, is the only way to really know where your money is going.

  • Agree to Disagree

Come up with spending and savings goals and guidelines, then let your partner manage his or her own spending money.

  • Designate a Bill Payer

One of you is likely to be better at day-to-day management of the household expenses. It’s okay to designate this person as the bill payer, but the other person should be involved and should know what needs to be done and how to do it.

  • Keep Separate Credit Cards

Each of you should have at least one credit card in your own name in order to maintain a separate credit history. If you divorce or your spouse dies, it will be difficult or impossible to get a mortgage, loan, or credit card without it. Having a joint card with both your names on it doesn’t work.

Attracting Money

There are many ways now that people are looking into attracting money. Whether it be online or offline, there are many sources that you can read up on how you can go about in making money. There are tons of get-rich-quick schemes online that can be deceiving. Everyone is always trying to find the fastest way in attracting money and they usually end up falling for at least one of them. Just keep in mind that it may be a scam if it requires for you to pay a large sum up front. They can be pyramid schemes that are actually illegal.

Money Mindset – Understand Why It’s Important

What is your money mindset? Do you have beliefs when it comes to money? Having a certain mindset or set of beliefs surrounding money can either be extremely helpful or hurtful financially. It is important to figure out what your mindset is and where that mindset originates. In most cases, beliefs about money are not conscious, while they do have an impact on your life.

Whatever you get in life, whether it is money or something else, is determined by the way that you feel about it. The money mindset that you have is determined by those things you focus on and the meaning that it has to you. For example, some people have an obstacle crop up and immediately decide to quit. Others look at the obstacle as a learning device and ask themselves how they can use this obstacle to learn more and be successful.

Think about your mindset when it comes to money. What do you focus on? What are you major thoughts about money? Are they pessimistic and fearful or are they empowering? Do you focus on finding ways to be successful, no matter the situation? In most cases, the results you see are a direct result of your focus and mindset.

If you want to see a change in your finances, it’s important that you change the way that you think and feel about your money. As you change your thinking and your mindset, it is going to change your actions. This change in actions will begin bringing about different results in your life.

Simply take a look at those who are successfully financially and those who fail financially. Usually you will find that the main skill of those who are successful is the right money mindset. Their idea about money and their thoughts about what money means to them makes a difference in their success or failure. If you want to have financial success, it’s time to change the way you think about money and you will see a difference in your financial results.