Pay Off Debt Consolidation

I found myself paging through a magazine in the doctor’s office recently and quickly realizing that I was looking at a magazine more than a decade old. This was evidenced by the large hair, odd fashions, and recipes without a drop of olive oil. As I enjoyed the trip through time, I saw an article on credit card debt relief. Considering the credit climate today versus the credit climate of the 1990′s, I assumed the methods and theories of debt reduction would be different. At least, that was what I was expecting to read.

Surprisingly, basic credit card reduction principles haven’t changed very much since 1992. You might think that during times of loose credit that debt reduction would be different than in times of tight credit. However, it appears my assumptions were mistaken.

Standard money management methods apply as always; spend only the cash you have on hand and put money away every month. Basic economic principles do not change over time no matter what shape our credit industry is in today as opposed to a decade or more ago. What’s changed is we have become dependent on credit cards.

Debt relief tips didn’t get much notice in the 90′s, but I’m sure there are many people in today’s world that need solid advice for getting out from under their credit burden. We have become too dependent on personal credit cards over the years and now appreciate good, solid advice on how to reduce our debt.

So, what are the basic strategies for a family like yours to get rid of their credit card debt for once and for all? Briefly outlined, here are the steps you need to follow to get on the right track. Amazingly, these 6 steps are just as true today as they were back in 1992:

1) Destroy Your Credit Cards – This may hurt a little if you’re used to having a never-ending supply of credit, but it’s critical. Get rid of those department store cards first, than when you get to your Visa, Master Card, or American Express, stop. Check out the terms of your major credit cards and determine which one you should keep for emergencies. You’ll want to be able to make reservations, use the kiosk at the airport, etc., so you’ll need one major credit card. Cut the rest of the cards up now.

2) Crunch The Numbers – Now it’s time to do a family budget if you haven’t already done one. Without spending a lot of time on detail, simply take your net income each month, subtract the expenses that must be paid every month such as mortgage, rent, heat, lights, food, and clothing. What’s left is your disposable income; what you have to work with to pay off the credit card debt. This is information that you must have on hand in order to move on to the next step.

3) Be Brave and Call the Card Companies – This step is considered by many people to be the most difficult, but it is also the most crucial. You won’t get very far making minimum payments as late fees and high interest keep piling up. Get the last statements together and call the credit card company customer service department. Tell them you are going to pay off your balance but it is only possible if the late fees are dropped and the interest is lowered. Credit card companies are looking for every payment they can squeeze out of you, so be ready to negotiate and don’t be intimidated. You are talking to credit card company employees doing their job, and you are doing yours.

4) You’re Going to Need to Sacrifice – Perhaps you’re expecting a tax refund, or a bonus, or some other “found money.” We all like to have a little extra money to spend, however, this time it’s different. Sorry to rain on your parade, but you have a goal of being debt-free and you have committed every penny to spending down your debt. Look at the interest each credit card company is charging you, even after negotiating a lower rate, and that money becomes more valuable than ever. Your found money is going to have a much bigger return if you use it to reduce that interest-laden debt.

5) Don’t Give Up and Don’t Give In – You won’t be living in a new debt-free world overnight. That’s the reality. You might not be able to breathe easier for a year or more, but you will be making progress toward freedom from credit card debt. There are no instant fixes, contrary to what those commercials tell you. Your credit card debt didn’t happen overnight, so it won’t disappear quickly either. You should see some progress in roughly six months or so. This encouraging news may entice you to splurge on yourself to celebrate, but don’t. Just look at the interest you’ve been paying all these years on those fancy treats for yourself. Haven’t the credit card companies gotten enough of your money? Hang in there; rewards are coming.

6) Approach Debt Consultants Carefully – A never ending barrage of commercials promising fast debt relief has been added in recent years to the business of credit. There are legitimate companies that do handle debt consolidation and financial planning, but you have to check them out carefully. If a debt consultant offers you a quick and easy fix to your credit woes, they are not to be trusted. There are no easy ways out from under a pile of credit card debt. If you consider using a debt consultant, interview them in person and ask pointed questions about how much of your money goes directly to the credit card debt. If you are certain you want to pursue a debt consultant, do so only after checking them out with the Better Business Bureau. Also, ask for recommendations from trusted friends. Get all the information up front before you decide.

When it comes to debt, times really haven’t changed. Your parents and grandparents were right about how to handle money; don’t spend too much and put some away every month. Credit has been too soft and too available for much too long. Now, many of us find ourselves in a very difficult position. We can’t enjoy our lives if we are drowning in debt and unable to break free. These simple steps have worked for people through the years and can work for you, but only if you follow through all the way to the end…the end of your credit card debt. Then you can breathe deep and relax; finally free to enjoy your own money.

Nicole Dean is the mostly-sane mom and owner of ShowMomtheMoney.com – a fun and informative site to help moms achieve success working from home. She welcomes you to learn more ways to save money in her Frugal Moms section. Be sure to sign up for her free lessons for work at home moms.

The economy is poor, people are losing their jobs, and Obama’s healthcare plan is nowhere to be seen. Hey, that’s life. But saving some money and putting it to the side can help cushion these hard times for you. And there isn’t a shortage of ways to get this done.

Don’t by unnecessary stuff. Learning the difference between frivolous and essential spending can save many people hundreds of dollars in the long run. We are used to going out and just buying stuff, with no thought to how much it costs. Cut this behavior, and you are off to a good start.

Some common shopping practices may not actually save you as much money as you thought they did, and could lose you money in the long run. Buying the name brand does not necessarily mean you are buying a better quality product; store brands usually accomplish the same thing and are dramatically cheaper. Also, do the math when buying in bulk. Buying ten boxes of cereal isn’t cost effective when five of them go stale because you always skip breakfast.

The small stuff counts too. Don’t wrap a ridiculous amount of toilet paper around your hand when you go to the bathroom. Be stingy with the salt and spices when you cook. Cut the lights off when you leave a room. They may seem small and insignificant, but all these things cost you money, and when you get into the habit of regulating yourself, you save money.

Bag your lunch. Everyone loves to eat out at restaurants and buy six dollar coffees, but you can prepare the same things in your house for a quarter of the price. Practices such as these will have a significant effect on your total expenditures and could boost your savings drastically.

Once your savings become substantial, it’s time to prepare for the distant future. Open a 401K through your job and start thinking about your retirement. It’s never too early to prepare.

A Roth IRA can be a smart investment for retirement. There are many different kinds of bonds, certificates, and accounts dedicated solely to saving people money. Pick one or pick many.

Your finances are an important part of your day-to-day life. Saving money for the future ensures that tough times never get too tough.

Refer to more educational articles written by this same writer dealing with subject matters such as runner area rugs and soap dispensers.

Metropolitan Bank & Trust Co. (Metrobank) is one of the premiere universal bank and among the foremost financial institutions in the Philippines. Metrobank is also listed as a public company in Philippine Stock Exchange. It is a member of BancNet, a famous bank organization in the Philippines composed of different local banks.

One advantage of Metrobank to other Philippine banks is that it has branches in other countries such as in Europe, Middle East, USA, Canad and Korea. In the Philippines, it has also numerous branches spread all over the country. Metrobank offers different means of banking like online banking, banking directly to your bank, mobile and ATM banking.

In opening a Bank account at Metrobank, it would be advisable to ready all requirements like ID, photo ID and others. It is also recommended to enroll you bank account in the Internet banking feature of Metrobank.

Like other Philippine banks, it offers Internet banking allowing the client to have full access to his or her account anytime and anywhere. Some benefits of Internet banking are you can transfer money from one account to another without charge.

In opening a savings or checking account in Metrobank, you need to follow the following tips for quick processing.

1. Go to the branch of your choice where it would be convenient for you to open a bank account. It would be better if it is easily accessible and secure.

2. Ready all the needed requirements before going to the bank. Make sure you have the complete requirements.

3. Remember to bring money for depositing an initial deposit for your account. Have an initial deposit above the required monthly maintaining balance so as not to incur charges later on.

4. Upon entering the bank, go directly to the new account desk. Inform the bank officer you wish to open a new bank account. Several forms will be given to you, fill it up with the required data. Always ask when you don’t know what to do.

5. When you are finished filling up all forms, handle your initial deposit together with the application forms and signature cards to the bank employee for checking and processing.

6. Get you ATM or passbook after 3-5 banking days. Usually, ATM or passbook will be available for pick-up after 5 banking days had passed.

Metrobank is one of the good choices in opening a new bank account in the Philippines. It offers different products and services which are very useful for your financial management such as savings and checking account, loans, investment funds, money transfers and many more.

Gily Tenorio likes blogging on personal finance and financial management. His articles include stocks, mutual funds, investing, saving and financial management. For more details on requirements on how to open a Metrobank Philippines account, please visit Financial Literacy blog for more articles on saving and investing money.