1. Write out all your monthly expenses, in detail.

Do you have a mortgage or an auto note? If so, what is your interest rate? How much are your monthly payments? What is the outstanding balance on those loans? List them, in full detail.

Next, write down all your necessary monthly expenses. These expenses include things like electricity, telephone, insurance, food, etc. You should know how much you spend each month on all of these items.

After surveying your necessary monthly expenses, take a look at your discretionary monthly expenses. Discretionary expenses are those things that are optional. You don’t have to have them. But, you may enjoy them. Representative discretionary expenses include entertainment, eating out, club memberships and any impulse buys you make in a given month.

Lastly, list all of your credit card debts. Get your last monthly statement from each credit card and write down both the outstanding balance and the interest you’re paying on that balance.

2. Eliminate all non-essential expenses.

If you followed through on step one, you now have a really good idea where your money goes every month. So, go through the list and eliminate all expenses for things you can do without, at least until you get your finances under control. Consider it as a Cash Diet Plan for your spending habits.

After you’ve done away with all superfluous expenses, add up the amount you’ll save every month with those cuts. You’ll probably be surprised at the amount of money you can save every month by just exercising a little more self-control over your spending habits.

You can use the money your saving to pay off your credit card debt. After you’ve eliminated that debt you can consider adding your enjoyable but unnecessary expenses back into your budget.

3. Make your Cash Diet Plan a household project.

If you have a family, they will obviously be affected by your Cash Diet Plan. So get them involved in the planning. You’ll get rid of your debt a lot quicker if you work together on your family spending.

4. Look At cashing in your equity, if any, in assets.

You can refinance your home to take advantage of your equity and thereby lower your monthly payments. You can also use the equity in your home to get a loan and then use the loan to pay off your high interest credit card debts.

If you either don’t own a home or don’t have sufficient equity to pursue an equity loan, don’t forget about other assets you can turn into cash. Think about any antiques or collectables you own. Maybe it’s time you seriously considered selling those assets and using the cash to pay off your debts.

Prepare a list of everything you own that you can quickly and easily sell. Go through your garage and your closets. You’ll probably find some items of value that you can live without. Have a garage sale to turn those items into cash. You may even be able to sell some of them on eBay or through local consignment shops.

Yes, selling your assets is a drastic step but it may be the only thing that stands between you and bankruptcy court. The key is to begin thinking of as many ways as you possibly can to generate cash to pay down your debts as much as possible.

5. Consider consumer counseling.

There are a number of non-profit consumer credit counseling offices whose only purpose for existing is to teach consumers how to get out of debt and stay out of debt. Search for one in your local yellow pages and make an appointment.

The consumer credit counselor will help you better understand your financial state of affairs. He will also help you draft a budget. The counselor will also help you prepare a debt management program. That program will help you get your credit cards paid off as quickly as possible with as low an interest rate as possible.

Your credit score will likely drop-off a couple of points after you sign up with a consumer credit counseling service. But, it won’t be nearly as bad as filing bankruptcy.

6. Take a second job.

You may already believe that you’re working too hard. But, if you’re in such financial trouble that you’re considering bankruptcy, you should look into a part-time second job. You probably won’t get one that will pay very much. But, whatever little amount of additional money you can take in to apply to your debt may just be the difference between filing bankruptcy and averting bankruptcy.

Summary

Bankruptcy is often considered an easy way out of debt. But, there are adverse results to bankruptcy. And, those consequences can follow you around for 7 to 10 years. Keep that in mind and don’t rush into the decision to file bankruptcy. Seek other choices first.

Harvey L. Cox is a licensed attorney, certified mediator and founder of NoLegalese Publishing, a self-help legal publishing site. If you want to know more about your legal rights without difficult legalese, go to NoLegalese Publishing

Fortunately, even during bankruptcy proceedings, a parent is still required to make his or her court-ordered child support payments. The welfare and care of the children is considered a top priority under American law, and these obligations take precedence over the relief afforded by filing for bankruptcy. The recent Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) helps clarify the rules surrounding such payments, and re-emphasizes the importance of providing for and caring for one’s children.

Chapter 7 bankruptcy is a type of liquidation bankruptcy, in which non-exempt property is sold. The sale of these items is used to pay off one’s creditors. For example, if you owe $10,000 to the bank and can’t pay it, you can file for Chapter 7 bankruptcy, and the money made from the sale of your possessions is used to pay off that debt. Under the BAPCPA, the continued support of any children is considered a serious priority, and proceeds from the sale go towards your court-ordered payment plan first, before creditors are able to take the money.

Chapter 13 is the other common type of personal bankruptcy, and it is a restructuring bankruptcy. In Chapter 13, you present the courts with a plan to repay your debts over a set number of years with regular payments to your creditors. When child support is involved, the payments are included in the court documents describing the repayment plan. For the Chapter 13 bankruptcy filing to be confirmed, there must be clear plan to make regular child support payments.

While the idea of having your former spouse enter into bankruptcy may be initially scary, bankruptcy actually allows him or her to make the child support payments on a more regular basis. Because the other outstanding debts are being reduced, there will be more money available for the children.

To learn more about how bankruptcy affects the terms of your divorce, or if you have any other questions about family and divorce law, visit http://www.divorcelawyerssandiego.com

Joseph Devine

Bankruptcy reform has made it more difficult than ever for people to file bankruptcy and enjoy being able to just get rid of credit card debt when they cannot afford it. However, this increase in difficulty when it comes to debt relief has led to credit card companies that are more aggressive than ever before. There is a great debate among the ABA, or American Bankers Association, about who is to blame for credit card debt and so many bankruptcy cases being filed. The lenders blame the consumers, while some blame the creditors for being too aggressive.

There will never be a definitive answer as to who is at fault. However, in order to make sure that consumers are safe no matter what creditors are doing, it is important to be informed. It IS harder than ever to file bankruptcy if a financial debacle is created. It isn’t hard to find debt relief services or companies that can help with debt settlement. It is the responsibility of the consumer, no matter how persuasive creditors might be, to avoid becoming another statistic of credit card debt and let debt take over their lives.

People should be taking this seriously, and taking the time to educate themselves and their families on the use of credit cards and how to manage credit and debt. Some people will fall victim to the flashy cards and seemingly glamorous offers, while others will be able to be responsible and stick to their budgets. It’s all about putting forth the effort and understanding how you can avoid becoming a victim.

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We have committed our resources as a Team to help Americans just like you find financial freedom. Our ultimate goal is to help you solve your financial woes so you can build a strong sustainable fiscal future.

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The two general types of indebtedness; recourse and non-recourse debt, are distinguished by personal liability. A borrower is personally liable for recourse debt; they do not alternatively have the same personal obligation in the case of non-recourse debt. Taxable income arising from the cancellation of recourse debt can occur whether or not property is returned or surrendered. Surrendering property in full or partial payment of a recourse debt is actually treated as a “sale” of that property at “fair market value”. Debt income is usually “generated” when the cancelled or forgiven amount of money owed exceeds the value of the property surrendered in payment of the outstanding debt. Thus, repossession and foreclosure are both treated as a sale or exchange of property and the rules of gain or loss consequently apply. Similarly, in the case of recourse debt secured by abandoned property, ordinary taxable income can also be realized if the debt is cancelled. Alternatively, any money realized from the sale of property to satisfy non-recourse debt is considered the amount of debt cancelled; there is no excess amount over fair market value recorded.

There are several exceptions where the reporting of taxable income from cancellation of debt does not apply. There is no taxable income derived from situations where the cancellation of an outstanding debt is intended as a gift or represents deductible debt. In the latter case, there is no perceived debt income if the paid debt would have been a deductible tax item, such as a business expense, if it had been a non-recourse loan (discussed above), or some student loans with special contract provisions regarding the performance of services in lieu of full payment. Similarly, cancellation of debt in a bankruptcy proceeding, qualified farm or real property business indebtedness, or specific situations where an individual proves their insolvency immediately before discharge of the cancellation of debt do not generate taxable income.

Two information documents are used when reporting cancellation of debt; the IRS Form 1099-A, Acquisition or Abandonment of Secured Property and the IRS Form 1099-C, Cancellation of Debt. The proper reporting of either of these documents on an income tax return is best left to an experienced tax preparer. Do NOT overlook COD events when filing your return. For more information, visit the IRS website, IRS.gov.

As an author and consultant, Phil Schein specializes in areas that are critical for successfully running a home-based or small business. WIth backgrounds in Ecommerce, accounting and information technology, Phil has spent over 15 years in various levels of management and as a corporate trainer. He has published several technical books. Originally from New York, Phil now lives in Las Vegas, Nevada because he enjoys the warm weather. One of his current business websites is http://www.sohotaxtips.com Please contact him through his business website http://www.rainorshinesoftware.com

The institutions that offer the Christina credit debt counseling do so from the Christian perspective. They actually tend to provide counseling based on the biblical beliefs and principles. There are certain trained counselors present in these institutions. They counsel the people in such a way that they do not repeat their mistakes in future.

Internet is the best place to search for these services. Other than this, you can also get the Christian credit debt counseling from the local ministries, some non profit companies and even the churches. These organizations are available throughout the nation. So wherever you belong to you will be able to receive this service.

The counselors present in these organizations are very compassionate as well as caring. First of all the Christian credit debt counseling will evaluate the financial situation you are presently in. after evaluating they will be able to provide you with a good plan to get out of the situation. The plan that they will provide will be good for both the parties involved.

The creditors as well as the debtors will be happy with the plan. The interest of both parties will be looked after. The counselors will first of all want to know about your problem. With the help of this they will come to know the reason that is responsible for this kind of a situation. This will help them to sort out the whole problem.

So the customers must not hide anything from these counselors. The Christian credit debt counseling also helps people to take care of their future budget. If you are overloaded with debt then this is a better way to get out of it. The counselors are professionals so they are the best suited for this.

Want to get out of debt the Christian way? Check out Christian Credit Debt Counseling and Christian Debt Relief. To learn about all of your get out of debt options, go to http://www.DebtErasure.com

1. First objection: “I do not know what to do”. Here is the answer: Do something. Do the best you know at the moment. I am not saying that it will be the right thing to do, but you will get a feedback. Next action will be better. For example: Write down all of you credit cards on a sheet of paper. Call the credit card lender and talk to them. Talk to you relatives and friends.

2. Second objection: “I am not knowledgeable to know how to do it”. Even if it is a true statement, which I doubt, there is a solution. It is very simple: ASK. Start with your lender and try to find out. If they try to scare you, do not listen. This is just part of their job. I will give you a priceless tip. Target 0% interest rate and get on a 5 year payment plan. The second option is a settlement. This works out beautifully, just be persistent and know what you want.

3. Third objection: “It will not work out anyway”. If you approach it with this hidden negative intention, it will not work for you. You must change it with a plan for a positive outcome. You might think that this has nothing to do with your credit card situation, but it does. Convince yourself that what you do will lead you to your goal (payment plan or settlement).

The most difficult decision is to take the first step. I know that there will ba a lot of self talk against it, but do it anyway. You will feel so proud of yourself after you first settlement.

And now I would like to invite you to visit my website: http://www.DebtAid101.com. If you are really confused and do not know how to start, send me an e-mail: support@debtaid101.com. Just fill out the box at the very bottom of the website. I will reply within 24 hours. And yes, it is free.

To learn and become a captain of your financial boat, check out my report Debt Aid 101. You will be surprised how much you can accomplish.

from Margarita Slavkov – Credit Card Debt Solver

In lieu of, there are many ways which you can eliminate your debts and become debt free.

• Credit Counseling
• Debt Settlement
• Bankruptcy

A credit counseling program is also known as a debt management plan. Credit counseling is the process of consolidating all your unsecured debts into one payment plan through an agency where lower, fixed interest rates (APRs) are obtained and late, over limit, and past due fees cease once enrolled. You make a payment each month to the agency and they send payments out to each one of your creditors every month. The creditors still send you statements monthly which show the reduced rates and the payments being made on your behalf by the credit counseling agency. The biggest advantages with this method is the convenience of one monthly payment, a reduction in fees, the stopping of additional fees, and an improved credit score over time from the consecutive monthly payments and continuing balance reductions. Your best bet in this arena is to work with a non-profit agency that you’ve verified with the BBB as a reputable company.

While both debt settlement and credit counseling agencies use the term debt management, they are both very different means to eliminating your unsecured debts. Debt settlement programs negotiate the balance due down by 50-70 percent. You make 1 monthly payment to the settlement agency as you would a credit counseling company. The difference though is that the payments with a settlement company are usually held in an escrow account and not paid monthly to encourage better negotiations 12-16 months later as funds build from your monthly installments. An account cannot be settled on until the account has reached a charged off status, meaning the debt has been delinquent for more than 6 consecutive months. A charged off debt remains on your credit as a negative mark for 7 years, regardless if the debt is paid in full or not. Once a settlement company does reach an agreement, the difference saved is then considered taxable income by the IRS and you’ll be sent a 1099 form to file the savings. This option best suits those whose accounts are already in a charged off status and owe less than $3k.

If you simply cannot afford your bills and have fallen considerably behind it may be time to consider bankruptcy. Consumers who have lost their job or have come to the point where its down to paying their credit cards or their rent may not have any other alternative and can seek free legal counsel to confirm. A non-profit budget counseling agency will administer a free budget counseling session with consumers to review and account their debt to income ratio on a monthly basis. This is done to help the consumer assess where they’re currently at and establish goals as to where they want to go in their financial future. A budget analysis is also required when applying for bankruptcy as the creditors will want to know why you can no longer make your payments. Bankruptcy is considered a last resort and should be consulted with an attorney. A good law firm will provide a free consultation or a reputable non-profit agency can point you in the right direction after assessing your debt to income ratio.

Any of the above methods can help eliminate debt, it just depends on your specific situation- Where you’re at, where you want to go, and how you will get there. There are many free consultation services that can help you make an educated decision as a consumer to find out and explore which option best suits your financial situation. These agencies are usually non-profit, credit counseling agencies offering free budget counseling, etc. Most of these consultations are free with no obligation and should be conducted by a certified credit counselor. As always, before you do business with anyone be sure to verify their reputation with the Better Business Bureau at http://www.bbb.org.

For more free information or a free budget counseling session to assess your finances and see what option is right for you, please call 800.905.1563 or complete an application on our website, http://www.freedomdm.org, to speak to a certified credit counselor. Can’t pick up the phone? Go to our website and click on the live chat button to speak to a certified credit counselor, just minimize the window so your boss doesn’t see!

Credit counseling

Depression

Without question, depression is probably the most-often cited after side effect of filing for Chapter 7 bankruptcy. People who have financial trouble will lose sleep, become physically ill (the most “popular” physical effects include ulcers, heart conditions, hypertension), and notice a definite strain in their relationships.

Knowing ahead of time that depression is a side effect of Chapter 7 bankruptcy allows filers to prepare for what can be a very bumpy emotional road to their “fresh start.” By understanding just how bad the depression can get, filers can join support groups or seek advance-advice from their doctor or counselor.

Physical Stress

As noted above, there are physical side effects to Chapter 7 bankruptcy, many of which are caused by the added pressure of a discharged bankruptcy. Knowing how severe some of the side effects can be, filers are encouraged to make changes to their diet and physical activity.

Cutting back on fatty, sodium-rich foods and eliminating un-healthy eating and drinking habits during the discharge period will help in keeping the body well recharged and better equipped to deal with the added stress. However, physical activity is also important and it is strongly recommended that while filers undergo the discharge process they should also become more physically active. This might mean walking more often and driving less. It could mean adding a gym workout or two to the regular weekly routine. Ultimately, physical activity combined with proper nutrition will help deter some of the serious physical side effects associated with Chapter 7 bankruptcy.

Relationship Tension

Without question, the tension in personal relationship becomes much more apparent and often more strained. The good news is that how people relate with one another are often amplified by unknown factors like depression and added physical stress.

By expecting depression, curbing poor dietary trends, and exercising more, filers will also be better prepared to deal with the anticipated tension in the relationships that matter most. Dealing with such tension is also made easier by ensuring these three tips are followed.

Dealing with Chapter 7 Bankruptcy

As noted throughout this brief article, dealing with the side effects of Chapter 7 bankruptcy does not have to be as difficult and dramatic as it often is. By expecting depression to continue (and even expand in some cases) following the discharge process, filers will know exactly what to expect. Contrary to commercial advertisements, Chapter 7 bankruptcy is not a quick and easy solution that guarantees a fresh start. Knowing this up-front allows filers to be prepared for the reality.

As well, filers should make changes to their diet and adopt a healthier lifestyle through proper nutrition and increased physical activity. Combined, these two items will ensure the body is prepared to endure the physical strain that chapter 7 bankruptcy imposes on their system.

Chris has more than 16 years of experience in the financial services industry, having helped thousands of clients fix their personal finances. He maintains a debt-free blog that helps people deal with Debt Trouble at How To Repay Debt dot com.

–>>Get Your Free Bankruptcy Guide and Determine Whether Bankruptcy Stress will be manageable for you by visiting HowToRepayDebt.com.

Stock Market Returns Are Leading Indicators

We hear all of the time about leading and lagging indicators. A leading indicator tells us what is expected to happen (higher stock market returns suggest companies are expected to make more money). Lagging indicators tell us what has already happened but is only surfacing now — for instance, the statistic on higher bankruptcy filings tell us that more people were unable to repay debt. It does not mean that they cannot repay debt today, but when they filed they had no other means.

With this in mind, with so many companies expected to become more profitable going forward, it seems employment expectations should improve as companies spend on expansion and other plans. Instead of looking up debt settlement information, which will damage credit, looking at more creative ways to repay debt might make more sense.

Higher Returns Means More “Wealth” In The System

This time around, the recession was blamed on a housing bubble that saw many people lose tremendous equity in their homes and, losing their job, having to sell at a loss. This caused an abundance of supply, further depressing house prices. Bottom line is that a lot of people invested a lot in their homes and the homes lost their value, people weren’t spending as much. This in turn, impacted stock prices. People were more interested in ways to repay debt then in ways to get deeper in debt.

There is another type of investment, however, and that is stock investments. When markets start gaining, people become wealthier as a result and some of this wealth gets transferred into the system as people make purchases. Instead of drawing out equity from their home, they draw equity from their investments. (This was also blamed for the short recession that followed the Tech Bubble in the early years of 2000).

The markets give us a lot of positive news about our how we can repay debt and start living better. With this information in mind, people are wise to forget about learning more about debt settlement and start finding ways to make some short-term sacrifices and repay debt so that, when their finances finally turn around, they can enjoy the benefits of stronger credit.

–>> Learn More About How To Repay Debt at the author’s debt free blog

Chris Blanchet is a Financial Advisor with more than 16 years of experience. He has helped thousands of people fix their finances and become financially better off. He maintains a blog at How To Repay Debt dot com.

But let’s get straight to the point. A do it yourself bankruptcy is NOT feasible.

You might have heard people talking about how they went through a do it yourself bankruptcy successfully but the chances are that this was before 2005.

In 2005, Congress made some reforms to the bankruptcy code. These changes have made the law notoriously difficult to understand, even for the professionals. And for that reason, it is really not a good idea even to attempt this without an attorney backing you up.

For a start, although most people who were eligible before 2005 still are, some are now not. You really need to seek unbiased and honest advice of a legal professional to work out whether or not bankruptcy is even the route you should be considering. And then, once you establish that it is, the hoops you have to jump through are so excessive and complicated that you simply cannot do it alone.

Of course you are probably concerned about making the payments to the lawyer for fees. But you are going to be much better off simply considering this a necessary expense and hiring a good lawyer. These lawyers deal with people in financial trouble all the time and are often quite happy to work out a manageable payment plan with you in order to make paying easier.

If you are thinking of Do-It-Yourself Bankruptcy then you need the right information before you make that important decision. To find out more on filing for bankruptcy, simply Click Here