7 Ways to Achieve a Lifestyle that Gets You Debt Free

Feb. 15, 2010 - PRLog -- According to Careweb.com, most American families are carrying about $9000 worth of unsecured debt. Is it the American dream or is it becoming the American nightmare? What we are currently experiencing is the Instant Everything Mentality. Exceeding your credit limit in moderation is not uncommon and may be ok; however, you should be sure that before its interest is compounded you get those credit cards paid. Your family’s financial health is in danger if you let the credit card companies charge you the typical compounded interest most consumers are paying.

Pay Your Obligations at the earliest Possible Time

When you get your bill pay it immediately, you should not wait for the due date to start paying your bills. You need to bear in mind that the longer it takes for you to pay your loan, the higher interest accrues. For example, the money that you are paying for the interest could have been allotted for other much important things. The Cambridge Consumer Credit Index believes that most Americans have credit card debts on which they pay more on the interest. Because of this, those who are not paying the full amount of unpaid balance are in fact just paying only the minimum. Sadly, among those who have outstanding balances, only a few are able to pay half of the balances.

How to Be Discharged from Indebtedness

Careful planning, control and restraint may help you get away from your debt-dilemma. Here are 7 things you can do to achieve a debt-free life:

1. Remember your credit cards should be used for emergencies only. Upon making a larger purchase, be sure that you pay it within 30 to 90 days. This will prevent the interest from accruing significantly, this way the increase of your debt isn't going to be too much for you to handle. You don't want to be paying off the same obligation for several years. If this occurs it is amazing how much you really pay for that pizza you purchased 3 years ago.

2. If you are already have significant unsecured debt, you would be wise to refrain from using your credit card to avoid acquiring more debt. It is best to carry just a few credit cards because too many of these credit cards just tempt you to use them more often than you should. If you happen to be applying for the best credit card, go with the credit card company that is offering best terms. It is important to note that you must weigh this with the effect that it may have on your credit score. You should know that you will lose your available credit; and this is a factor that is considered in computing for your credit score. In fact keeping balances under 35% of your credit limit is ideal.

3. Listen to advice coming from credit firms or organizations. Be knowledgeable of the different courses of action that you may file, such as paying down the highest interest rate cards first and if you become overwhelmed due to a personal hardship look at what options will be best for your family.

4. Create your own plan that will help you take care of your obligations. Consider all factors such as your income and assets. From here, you should be able to balance your spending habits and debts with your income and assets.

5. Find ways to reduce your semi luxury expenses. Be practical and resourceful enough so that you can save more money on more useful things. Stay away from bad habits such as eating out frequently. You can find more important things to invest on other than those bad habits of yours.

6. Try to increase your income, Sell some underused items on Craig’s List or have a garage sale. This will help you sustain a better flow of funds.

7. Try your best to create an envelope fund, regardless of how much it is.

Financial Crossroads
Santa Ana, Ca. 92705
For a free consult call (888) 382-2439

www.financialcrossroads.com

info@financialcrossroads.com

# # #

Based in Santa Ana, Financial Crossroads is a member of The Association of Settlement Companies (TASC) and offers solutions and programs to Americans looking to get out of debt. Financial Crossroads uses a multi-faceted approach to become debt-free.