Free Credit Report Repair Guide

Pay off $49,000 in credit card debt in 5 years.

Have you seen commercials and internet advertisements offering to eliminate your debt in just a couple short years? No matter how much debt you have? Does it seem to good to be true? So what is the deal? Well there are two methods that can achieve this type of radical debt pay off.

The First method is debt settlement:

DEBT SETTLEMENT or DEBT NEGOTIATION:
“You make an offer to your lender to pay off 30% to 50% the current balance you owe. This is pre-collection agency. This process can take 6 months or more and it’s not for the weak of heart.”

This method can work to get you out of debt but it will trash your credit. It’s a trade off and some see it as an alternate to Bankruptcy.

The Second Method:

DEBT SNOWBALL or DEBT ROLL-UP:
“The overview for this program is you pay more a month than your monthly minimum on one debt while you stay current on all your other debts. You start applying the extra money every month to the smallest balance, and once that balance is paid off you apply all the money from that debt to the next largest balance. This will create a snowball effect in paying off your debt.”

This method is championed by the likes of Dave Ramsey and John Cummata.

If you would like to read a real life story about people who got really motivated and paid off large amounts of debt in a short period? Check out this article and get a bit of motivation.

Technorati Tags: credit card debt, DEBT SETTLEMENT, DEBT NEGOTIATION, DEBT SNOWBALL, DEBT ROLL-UP, Dave Ramsey, John Cummata

Sometimes when the debt is so large and you are looking at 2 to 3 yeas before you pay off the debt you feel like giving up. But a word of advice, it really does get easier. As you start to pay off more and more debt and sell results you create momentum which push you a long to continue on your journey to be debt free.

I have always compared getting out of debt to getting in shape. It’s hard but not impossible. It takes a plan (budget), discipline (tracking your progress) and motivation. I have found motivation is key to my success. Take notice of your small wins. Because every win is just that, a win!

Even if you are $80,000 in debt and have paid off $2,000 in the last year, that is great. You have taken action and need to stay motivated to succeed. Believe me that is better than doing nothing. And as you pay more off you will free up more cash to apply to debt and your debt reduction will start to rapidly increase. Thus the name debt snowball.

Slow to start but once it picks up speed it really gets moving. I believe in you guys so keep up the hard work and keep crushing that debt.

Technorati Tags: pay off the debt, debt, debt snowball

See Dave Ramsey at work her, well not really it’s Steve Bucci over at bank rate.com. His three steps are:

1. Get a plan - start a budget

2. Build an Emergency Fund of 6 months

3. Aggressively pay down debt.

Business failures, credit car debt and, yes, even too much fun can tip the scales of your daily lives, but you can get out of debt with three steps and some hard work.

In debt? Get out in 3 hard steps

technorati tags:Dave Ramsey, debt, Steve Bucci

I wrote about this last month, you can find the post here, but I found this really good article which gives instructions on how to do this… Check the bottom of the article for links to a site that will help you figure out how many allowances you need based on last years income.

You can give yourself a bigger paycheck by not over-paying your taxes. Here’s how to adjust your withholding to get an effective pay raise.

Give yourself a raise - MSN Money

technorati tags:bigger paycheck