Certified Debt Counselor

Jul

Debt Makes You Give Up

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We have come a long way in the last few emails. If you have followed my steps, you are now either moving quickly on paying down your debt or wishing you had never come into contact with me. I hope it is the first one and you are making significant progress in your quest to get out of debt.

I know, first hand, that it is tough. You see, I was right where you are. I was a slave to the debt master until I finally decided that I was finished. Once I learned that I was losing at the game, I decided to make the change.

It would be nice to tell you it was a simple process and it will not take you any time to get to where you want to be. If I said that, I would be lying. Lying – just like the commercials you see on TV promising to eliminate your debt. They can not do anything like that without really putting you into a very bad position.

There is only one sure way to get out of debt and, hopefully, you started doing it four emails ago. That one sure way is to stick with it. Using all the previous steps and just sticking with it will make sure that you are successful. This final step is, simply, sticking with the plan and task.

Some people will ignore the four previous steps and will be exactly where they were, or worse, in five years, in ten years and beyond.
Those that will be successful are those who stick with it. It eats at them and they must attack and never get up.

If I told you it is going away in six months to a year, you would know I would be lying again. It takes time and time will turn into success.

There are only three ways that will get you out of the debt mess you are in. All are available, but only one will work for you.
First, increase your income. Second, reduce your expenses. Or third and preferred – a combination of one and two.

By finding ways to increase your income and decreasing your expenses you will find it will help you stay with the plan and watch it working for you.

I am not talking about working two jobs for the rest of your life, but what if you put a goal in place to earn a specific amount of money to jump start your attack or to pay off one, some or all your debts – could you do that? Maybe work some overtime or even start a small business. There are many avenues to generate income and even more to reduce expenses.

One of the tougher areas is finding where to cut expenses. Here is a clue to help you decide – put everything on the table. Nothing should be too sacred as to not cut when your goal is getting out of debt.

When my wife and I started our path, we did not take a vacation for almost five years. Yes, we took time off and got away, but it was typically to a family members for a “visit” not a “vacation”.
Guess what? It helped us get out of debt faster. Going to Disney World – not us, we were getting out of debt once and for good.

Our closets were full of clothes. We did not need new clothes.
The amounts we spent on clothes were only spent because we HAD TO.
No new clothes….

Cable TV, phone extras, etc. there are many ways to cut you just need to find them.

The difference in those who succeed and those who did not is – sticking with it. Those that continue to hammer away out their debt will eliminate it. Those who chip away will have it forever.

Finally, look at the calendar. What is the date today? What will your debt balance be in one year? In five years? In ten years?
If you are aggressive in getting rid of this stuff in ten years the question would change to be – what do your assets look like?

Debt makes you give up money and things in your future. What are you giving up?

Why not call me on 1(866)369-5086 and benefit from a free 15 minutes consultation with me, you can ask any questions you have, and I’ll do my best to help you. NO charge.

Parkey Thompson

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Categories : Debt Free, Saving Money

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Jul

Moving Forward to Destroy Your Debts

By Parkey Thompson · Comments (0)

Now that you have the credit reports (www.annualcreditreport.com) and they are compiled into a list – it is time to get going. It is time to enact your plan.

Your plan is your strategy to move forward on each debt and have them removed or pay them off. This is never easy, but getting out of debt requires hard work. Remember, we are looking at this as a crisis and/or a major illness that has to be fought. You have to be aggressive or you will continue to struggle financially.

Now when I say aggressive I mean just exactly opposite of how some people pay their rent – slow and steady! You are going to attract this like a freight train head on. If not, it will be like paying your rent twenty years from now – still trying to get it done.

How long has it been since you have paid on some of this debt? On your list of debts (the one you created with the credit reports) create a column next to each debt and write the date of your last payment to them. It may have recent or on schedule and, if so, mark that one as “current”.

For those that you have not paid on in some time, mark that date that you believe you last paid this creditor. Some may show up on the credit report as indicating that it is in collections. If so, mark “collections” in the column beside those instances.

Finally, add a column (if you have not done so already) that shows exactly what you owe to each one. This may be what you believe that you owe them or what they think you owe them and is shown on your most recent bill or credit report.

In the previous email, we described the life threatening illness.
If you remember, you went to the doctor and she listed what what was wrong and what the game plan was to get you healthy and on the right path. This debt document that you have now created is the list of your debt illness and what has to be tackled.

Now it is time to tackle.

If you created your list on a spreadsheet the next step will be a little easier. If you did yours on paper, you may need to prioritize in order using 1,2,3…

Sort your list, on the total amount you owe, and list the smallest amounts at the top. Look at that – you have a list of all the things you owe on.

Is it unbelievable? To me, if it has anything it has too much and should be unbelievable. As you can see, you have a mountain to overcome, but you can overcome it if that is your vision.

I can remember back when I was a teenager. My dad let me stay home from school one day yo help him build a fence. Had I known what I was getting into, I would have went to school. Does your debt picture make you feel that way after you now see it?

It was a nice day, warm and sunny. As we were digging the post holes for the fence we encountered an obstacle – rock, solid rock.
This farm did not have rocks it had one big rock and it was the size of the farm or at least that is how I felt. When we hit the rock and could go no farther, my dad pulled out this spear like tool that was designed to bust the rock and allowed you to dig it out. It was easy, so I thought, just throw the spear in the hole and watch the rock bust. No way! It would just bounce right back.
My dad stepped in, grabbed the spear and as he began throwing it it kept saying “you have to get mad at it..”. Guess what? It worked! The rock began to break into manageable pieces to be dug out.

Your debt is no different. Your list now shows the manageable pieces. You need to attack each one like you are mad, and you should be, so that we can get it taken care of.

Here is the plan:

-   Stay current on all those you are current with – do not get
behind.
-   For right now, ignore the ones that you are not current on. Not forever, but long enough to get the others out of your life.
-   Each month, add as much money as you can to that smallest one until it is paid off.
-   Once the first one is paid off, you move to the second one. Now add the minimum amount of the first one that is now paid and all you can add in extra money.

In this period, you will be more aggressive with the more money you can bring in and add to the plan. Do not be afraid to work more overtime or get a part-time job – every little bit helps and gets you on the right path.

Finally, take this printed plan and put it where you see it, if not daily, weekly. Let this picture help in your motivation to be aggressive. How quick can you begin seeing things scratched off.

Your plan is worthless unless you work it and work it aggressively.

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Categories : Credit Score, Debt Free

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Jul

How To Keep Focus on Beating Debt

By Parkey Thompson · Comments (0)

How is your plan coming along? Do you have everything listed and are you aggressively pursing the pay off plan?

Remember, you need to have that plan posted somewhere prominent so that you and, if you are married, your spouse can monitor your progress.

Now it is time for one of the biggest steps of all – Just Say No! This one is really hard especially if you have used debt significantly and allowed it to be a part of your life.

This may show my age, but back in the 1980′s in an effort to stop the drug problems plaguing the U.S. population, then first lady Nancy Reagan led an effort to combat illegal drug usage using her famous words – Just Say No. Just Say No has been heard for years and most people (depending on age) think of Nancy Reagan when they her those words.

Just Say No. Practice it. Lean heavy on the “No”. You see, “No” is a word that we have dropped from our vocabulary over the last few years. By dropping the word “No”, we have lost some discipline for ourselves and our families. Say it again, “NO”. You are getting it, keep it up.

I have three children. Two in their teens and one in her twenties. Hard to believe. I can remember back to the time the oldest one began to walk. She wanted to get into everything. That is perfectly natural to explore. What also came natural was to test mom and dad. While she wanted to do whatever she wanted, we showed her that there are some boundaries. My wife was not a big collector of “knick knacks”, but she did have things placed on coffee and end tables that were off limits. The easiest thing would be for us as parents to remove those and replace them when they were all grown – RIGHT!

So we had to teach her not to touch those things that she was not to touch. I can see in my mind, right now, her look when she would try and we would say “NO”. She would stand there and look at you as if to say “…let me try and see if they mean it”. What she found out was that we did. It was not long to where she learned what she could and could not touch. She had to learn what “no” really meant.

One time, at my in-laws house, she tried to test it. Since we lived away from them, we would get to visit every few months. On one occasion she decided to explore the items there on the tables. I first said “no” and she just looked at me. When she reached to touch it, I reinforced my “no” with a smack on the hand. She wimpered, got the message and proceeded to go on her way. My mother-in-law commented that it was not necessary and she would not hurt anything. I politley infomred my mother-in-law that she was going to learn what she should not touch or do regardless of the location she was in.

You need to learn that too – and quickly. You need to learn what “no” means and Just Say No! If you are offered “free” tickets to the baseball game, just say no. What? They are free. Really, who is paying for the extra gas, the parking, the program, the hot dog, drink and popcorn? You see, it is not always free.

It may not be free tickets to the ballgame, but a great deal on a TV. You know the 46″ plasma that you have to have to fill that spot on the wall. I know, been there, done that and had plenty of debt to show for it. You do not need it. What you need is to get out of debt.

How about the extravagant gifts for your spouse or children. Yes, I know they deserve it. They also deserve a strong financial future and lingering debt does not fix it. Small tokens of love and appreciation will help keep your money focused on the debt reuciton/elimination plan.

Finally, how about those areas that we all fall prey to – food. Whether it be buying groceries without a plan or living at the restaurants, it is time to Just Say No. Do not spend all you discretionary money on food and, especially, restaurants. Your focus is getting out of debt and funding the restaurants does not get it done.

Regularly, I am told by clients that “…you don’t understand, we had too….”. No they did not have to to and neither do you. What you have to to is get out of the debt you are in as quick as possible. Short of a legitimate emergency, you can say “no” to much more than you have in the past. Now is the time to start making it happen.

I know, as I have heard in all my years as a husband, a father and a financial coach – “you’re know fun”. The truth is, when I was in debt I was no fun. Sleepless nights, constant worrying, no plan whatsoever – that was when I was no fun. Enacting my plan and learning to say “no” did seem like no fun, but the fun started when the first one went away and began to grow with each passing debt being eliminated from my account! No you are wrong, I am fun and I am now debt free by teaching you the same things I (we) have done.

I have been where you are and the debt is no fun. Get out of debt and you can afford to have fun – debt free fun!

Stick with it – Just Say No! Help your family learn to say “no”. Saying “yes” just delays the better life.

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Categories : Debt Free, Saving Money

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Jul

Ignite Your Debt Reduction Plan

By Parkey Thompson · Comments (0)

Wow, time is flying by. Paying off debt has never been so hard has it? Would you agree that it is much easier to accumulate that get rid off? It is time to stay the course and make sure that we are committed to paying it off!

You are now well underway or should be. If you are not, lets go back to that first email and start moving forward. Getting out of debt, as we have mentioned, is not something that we can easily go about. We must attack it just like we would a serious illness.
Are you moving as fast as you could and should be?

Today I want to share something with you that can, if you try it, will ignite your debt reduction plan. Most people overlook this because of attachment, but when applied it will get your plan moving faster.

Have you ever been on a diet? I have and, in fact, as I write this I am one one. Most people go on a diet to lose some pounds and they fail to realize that changing their behavior will help keep off the additional pounds in the future.

Most doctors and physiologists will tell you this – to spark your weight loss you MUST add some exercise to your daily routine. This exercise will help use up what you have eaten and will increase your metabolism to help ongoing processing of the right foods we eat.

Really? You mean of I go on a diet and add exercise it will help me get rid of the pounds I have faster and help me keep it off in the future. Yes, that is what I mean. Have you ever really tried it. I mean really – on a plan? If so, you know it works.

Your debt is no different. Paying it off needs a boost and I have a trick for you.

When I ask clients what their debt has been spent on, almost always I hear “… we really do not know…”. That is a very correct statement. You have gone so far into debt you have no idea what it was spent on. Oh yea, you can name a few things that stand out when you think about it or go grab some paperwork, but overall you have no idea. Some will say, “… some of that is living expenses like food, etc…”. How unfortunate that our debt payments have required us to put some of our daily needs on credit.

In order to get this going, here is your first task. If you are married, grab your spouse. If you have teenage children, grab them. Lets all sit around a table, with some paper and pens, and collectively write down everything that your debt has been spent on. Lets include everything we can remember. Groceries, clothes, weddings, gas and parts for the boat, birthday and Christmas gifts, home remodeling items – everything thing you can think of that went into your debt. Regardless of whether you think you have paid it off or not – put it on the list.

Once you have compiled the list, lets put a “best guess” estimate of how much the item was. This “best guess” column will be hard to complete because 1) you do not really know what you charged and 2) you really do not want to admit what you charged. Go ahead, write them all down.

Now we have a list. This is not a perfect list and should not be treated so. It is a WIP – Work in Progress. If you learn things as you move forward – update the list.

Next step is to identify what on the list can be sold. No need to back up, you read it right – SOLD! If you want to ignite your plan, what can be sold.

Here is where most stop and never restart their plan. They are too emotionally attached to sell. If this is where you stop, your debt will still be here next year and for years after that. Are you committed to move forward?

Many have started their diet’s with each new year to have been defeated within the first two weeks. When it comes to defeating your debt – is that you or are you committed to paying it off?

If you are committed, lets take the list and start getting things together. Whether a garage sale, Craigslist, eBay or whatever you choice – lets get things sold. It is time to clean it up, take a picture and get it sold. Do not let anything get on your emotional side!

There may be somethings that can not sold. Maybe it is the paint on the wall, the food you have eaten or the deck you put on the house. Regardless, get everything else that is not tied down and sell it. You may not believe this, but it is Biblical. Selling things to pay off debt is in the Bible. You may not read the Bible, but read this passage and you will see that what I want you to do was done centuries ago and it still works!! Read II Kings chapter 4.

Every dollar that comes in should be directly paid to debt – no if ands or buts. To make your igniter work – it has to be exclusively for debt pay down.

Paying down debt is one thing, adding an igniter by selling some of our possessions will get it moving rapidly.

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Categories : Credit Cards, Credit Score, Debt Free

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Jul

Common Credit Myths

By iadmin · Comments (0)

You have heard all the rumors…from neighbors, relatives or friends. There are a wide variety of these common credit myths floating around about what you should and shouldn’t do to manage your credit. We expose these urban legends to provide you with the truth about credit scores and credit reports:

Your score will drop if you check your credit - Fortunately, this one is definitely not true. Checking your own report and score is counted as a “soft inquiry” and doesn’t harm your credit at all. Only “hard inquiries” from a lender or creditor, made when you apply for credit, can bring your credit score down a few points. Worried about damaging your credit while shopping around for a loan? Multiple inquiries for the same purpose within a short amount of time (a few weeks) are grouped together into a less damaging period of inquiry.
Once you pay off a negative record, it is removed from your credit report – Negative records such as collection accounts, bankruptcies and late payments will remain on your credit reports for 7-10 years. Paying off the account before the end of the set term doesn’t remove it from your credit report, but will cause the account to be marked as “paid.” It is still a good idea to pay your debts, just be aware the major change in your report will come when the negative records expire.
Closing old accounts is a good idea – To close or not to close, that is the question. Many people advocate closing old and inactive accounts as a means of managing their credit. But they should think twice before closing the oldest account on their credit reports. Canceling old credit accounts can lower a credit score by making the credit history appear shorter. If you want to reduce your levels of available credit, ask for your credit limits to be lowered or close newer accounts instead.
Paying off a debt will add 50 points to your credit score – Your credit score is calculated using a complex algorithm that takes into account hundreds of factors and values. It is very hard to predict how many points you can gain by changing one factor. For a person with a high credit score, just one late payment can cause a significant drop. If a person has a low credit score, it may not cause a large drop at all. Just keep paying your bills on time, reducing your debts and removing negative inaccuracies from your credit report. Good financial behavior and time are the two most important factors for your credit score.
Being a co-signer doesn’t make you responsible for the account – When you open a joint account or co-sign on a loan, you are taking on legal responsibility for the account. Any activity on these shared accounts, good or bad, will show up on both people’s credit reports. If you co-sign for a friend’s auto loan and they don’t make the payments, your credit profile will be hurt by their actions and visa versa. The only way to stop this double reporting is to refinance the loan or to have the creditor officially remove you from the account.

Parkey Thompson is a Dave Ramsey Certified Counselor from Cumming in Georgia near Atlanta. As a Certified Debt Counselor Parkey has helped scores of people in personal financial coaching to turn their life around, and get them debt-free.

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Categories : Credit Score, Debt Free

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Jul

Regain Focus and Regain Control

By iadmin · Comments (0)

Debt Free

Isn’t it time to regain focus so you can regain control?

Challenging financial times have brought about much anxiety and uncertainty. You have taken the first step in changing your current situation and financial future. Welcome to Financial Focus.

Too many families today are living from paycheck to paycheck. Everything is for today or, in reality, still paying for yesterday. There seems to be no way to get ahead – until now. It is time to regain focus so you can regain control.

Financial Focus is helping individuals, families, small businesses, churches and others regain focus so that they can regain control. People just need some help and direction. That is what Financial Focus is all about.

Parkey Thompson is a Certified Dave Ramsey Counselor. Parkey as a certified debt counselor has helped scores of families to break free from strangling debt and become debt free!

Technorati Tags: certified debt counselor, challenging financial times, change financial future, consumer credit counseling service, dave ramsey certified counselor, debt free, financial focus, how to eliminate credit card debt, How to get out of debt fast, how to pay off credit card debt, need some help, Parkey Thompson, paycheck to paycheck, regain control, regain focus

Categories : Credit Cards, Credit Score, Debt Free, Mortgages

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Debt Makes You Give Up

Moving Forward to Destroy Your Debts

How To Keep Focus on Beating Debt

Ignite Your Debt Reduction Plan

Common Credit Myths

Regain Focus and Regain Control

Isn’t it time to regain focus so you can regain control?

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