How to be Debt Free in 6 Easy Steps!

A debt free is life not unattainable. It may seem an impossible and frightening task but it is possible. It requires patience and discipline determination and time. Given below is a run down of 6 steps that will help you in the journey towards a life that is free of financial stress.

Step 1 – Admit that you are facing problems in
managing your finances.The first step towards debt
free life is to come to terms with the fact that your
debts have become unmanageable. Leaving bills unpaid
and ignoring the problem does nothing to wipe off your
existing debts. It only makes the situation worse.
However the fact that you’re reading this article means
you have accepted that you are in debt and you are ready
to take the next step.

Step 2 – Take an honest look at your present financial
situation. Make a list of your debts. Next to the listed
debts include the name of the creditor,the total amount
you owe, the rate of interest you are being charged and
the monthly payment you make towards this debt, if any.
It will not only give you a clear picture of your
financial standing but will also help you in choosing
an appropriate debt solution.

Step 3 – Prioritize!
Decide which bills to pay first and which ones can wait.
Concentrate on paying off the debts that have a higher
interest rate. You will save more money in the long run
by ridding yourself of these expensive loans first while
keeping up the required repayments on the others.When
making the repayment remember to pay a little more than
the minimum as minimum debt repayments only covers the
added interest. It makes no impact on the capital amount.

Step 4 – Create a realistic monthly budget for your
outgoings. List all the essential expenses and
non essential expenditures.
The non essential expenditures can be completely
cut or lowered substantially until you become
debt-free. Evaluate your monthly balance by
subtracting monthly expenses from your monthly income.
This will tell you how much money you have at the
end of the month so that you can start paying off
your debts. Do not forget to keep some money aside
for unexpected expenses. As your debt goes down,
you will see a fall in your interest charges.

Step 5 – Refuse to take on any kind of new debt.
As you already in are in debt, adding
on a new debt will increase your debt and
will hinder your progress towards being debt free.
You must decide once and for all that you will
not add any new debt and stick to it!

Step 6 – If you are not able to manage your debts on
your own then you can opt for professional credit
counseling. You will be guided by financial experts
who will help you in taking a step nearer to a
debt free life. There are options you can take such
as taking out and IVA or even opting for Bancrupcy.
Recently there are companies who offer to write off
your credit cards legally.

It is possible to take a different route to having your cards written off if you took out your credit finance agreement after April 2007.

Eliminate your Debts by This Method.

In fact it is possible to take this route for ALL credit finance agreements. You will have to do the work yourself and it will cost you a one off fee of around £650 to receive all the information and template letters you need. It will mean a lot of letter writing, time and energy. But it is possible and I am doing it with one of my cards and a loan. I will keep the site updated with the process and results. It is called ‘Debt Elimination’ and here is a brief explanation of how it works.

How to eliminate debt and create wealth in the shortest possible time.

The company does not give legal advice however they supply the knowledge, philosophies and template letters necessary to cancel out your credit card balances on all major credit cards.

What credit card holders don’t realize is that when banks approve your credit card and establish your credit card limit, they use your name and your signature on the application to create the money to fund the card. This is in essence your OWN MONEY. How does it feel to realize that you have been paying the banks outrageous interest rates for all these years on your OWN MONEY? What a deal for the banks!! Having you pay back your own money plus interest on it. At no time do the banks lend you any of their own money, or of other depositor’s money (Not One Single Penny)

Legally Eliminate Credit Card Debt or Personal Loans

Your unsecured credit card debt is legally terminated based strictly on existing laws, policies and procedures that banks and other financial institutions are required to follow. A cursory examination of these laws reveals that modern lenders breach their contract with every single customer. Banks, credit card companies and other financial institutions advertise that they are in the business of lending money, but this is false. The Banks own accounting ledger shows that the exact opposite occurs. Once a customer challenges a lender and requires that the lender produce its accounting books and forces it to explain exactly whose asset was used to fund the loan or credit line, the original contract/agreement is rendered null and void because the lender did not fulfill part of the agreement, i.e. it failed to loan money that belonged to the bank/credit card Company.

What is really going on?

Example 1:

For sake of illustration please follow along with this example:

Part of any bank checking-account agreement is that a customer’s deposit must be credited to the customer’s account. When a customer makes a deposit of £100 the bank accepts the deposit and credits his/her account for £100. The bank’s accounting record now shows that the bank has a liability on its books for £100, because of the £100 asset deposited by the customer (a bank liability is a “”bank IOU”" for the customer). Per the customer’s agreement with the bank, the customer can withdraw the £100 at any time and the bank is legally liable for returning the deposit when demanded.

Is the bank legally obligated for returning a customer’s deposit? Is the bank in breach of the checking account agreement if it does not return the deposit? The answer to both of those questions is “”Yes.”" The banking business would be the best kind of business imaginable if banks were not obligated to return people’s deposits-but as incredible as it may seem that is exactly the way banks and credit card companies do business when they extend credit and loan money to customers!

In other words, your signed credit card or loan application (promissory note backed by your future labour) is converted into a “”cash”" asset by the bank. In fact, the bank stamps the back of the credit card agreement/loan application (promissory note) just as it would any other deposit, and then deposits it into a “”transaction account”" (a special account no different than a checking account that is opened under your name, but without your knowledge or consent). The bank then returns the cash to you (your “”loan”"), but also wants you to pay back this “”loan”" (of your own deposit) as if the bank had loaned you its own money. For these reasons, the bank does not fulfill its part of the loan agreement, thus nullifying the contract between the two of you and releasing you from any “”repayment”" obligation.

Despite what you may have been taught, this is the way the banks do business and this is what has happened in every single bank “”loan”" transaction you have ever been involved in. Bankers pray that no one will find out about the scam and ask for return of his/her original deposit, i.e. the signed promise to pay (asset) and expose the banking system for the confidence game that it is.

Example 2:

Here is a simpler, if idiotic, explanation of the above example:

John agrees to loan you £100 of his own money at 5% interest, but also requires that you put up a £100 cash deposit as collateral for the loan. Let us say that this was an acceptable loan arrangement for you and you entered the loan transaction, taking a £100 note from your pocket and giving it to John as collateral, and John then handing it right back to you and calling it the “”loan”". Let us also say that you paid back the £100 plus £5 in interest as agreed, but that John failed to return the £100 cash deposit that you had put up for the loan.

John would be in breach of this loan agreement for two reasons: 1) He did not loan his own money, and 2) He did not return your deposit. Both are grounds for nullification of the original loan agreement and all such “”loans”" from banks, credit card companies, and other types of “”lending”" institutions are not different from the example.

Modern “”lenders”" accept your signed promise to pay as “”cash”" and deposit the signed promise to pay in an account in your name without your knowledge and use your deposit as the source of all the money you receive in the so-called “”loan,”" but never tell you about it and never return your original deposit. This is the way the banking system has operated since 1913.

If you fit in any of the following categories the program is designed for you:

* You cannot afford paying your credit card bills.

* You have no incentive for paying your credit card bills.

* You can tolerate negative entries on your credit report for as much as a year.

* You would like another chance, but do not like the idea of filing for bankruptcy just because of credit card debt.

We do not recommend people attempt termination of credit card debt without competent assistance. Banks and credit card companies have very clever officers and lawyers and can instantly recognize when you do not fully understand what you are doing. In such case you can be easily defeated. However, we can assure you that we offer the finest quality assistance available.

The process is much easier and faster than other programs, and before you know it you will be out of debt and back on your feet with a clear clean credit report.The program enables each individual to finally take control of their financial life and stop drowning in credit card debt without the need for bankruptcy.

Have You Heard About Debt Elimination?

It is possible to take a different route to having your cards written off if you took out your credit finance agreement after April 2007. This is called Debt Elimination and it is a DIY solution.

In fact it is possible to take this route for ALL credit finance agreements. You will have to do the work yourself and it will cost you a one off fee of around £650 to receive all the information and template letters you need. It will mean a lot of letter writing, time and energy. But it is possible and I am doing it with one of my cards and a loan. I will keep the site updated with the process and results. It is called ‘Debt Elimination’ and here is a brief explanation of how it works.

How to eliminate debt and create wealth in the shortest possible time.

The company does not give legal advice however they supply the knowledge, philosophies and template letters necessary to cancel out your credit card balances on all major credit cards.

What credit card holders don’t realize is that when banks approve your credit card and establish your credit card limit, they use your name and your signature on the application to create the money to fund the card. This is in essence your OWN MONEY. How does it feel to realize that you have been paying the banks outrageous interest rates for all these years on your OWN MONEY? What a deal for the banks!! Having you pay back your own money plus interest on it. At no time do the banks lend you any of their own money, or of other depositor’s money (Not One Single Penny)

Your unsecured credit card debt is legally terminated based strictly on existing laws, policies and procedures that banks and other financial institutions are required to follow. A cursory examination of these laws reveals that modern lenders breach their contract with every single customer. Banks, credit card companies and other financial institutions advertise that they are in the business of lending money, but this is false. The Banks own accounting ledger shows that the exact opposite occurs. Once a customer challenges a lender and requires that the lender produce its accounting books and forces it to explain exactly whose asset was used to fund the loan or credit line, the original contract/agreement is rendered null and void because the lender did not fulfill part of the agreement, i.e. it failed to loan money that belonged to the bank/credit card Company.

Example 1:

For sake of illustration please follow along with this example:

Part of any bank checking-account agreement is that a customer’s deposit must be credited to the customer’s account. When a customer makes a deposit of £100 the bank accepts the deposit and credits his/her account for £100. The bank’s accounting record now shows that the bank has a liability on its books for £100, because of the £100 asset deposited by the customer (a bank liability is a “bank IOU” for the customer). Per the customer’s agreement with the bank, the customer can withdraw the £100 at any time and the bank is legally liable for returning the deposit when demanded.

Is the bank legally obligated for returning a customer’s deposit? Is the bank in breach of the checking account agreement if it does not return the deposit? The answer to both of those questions is “Yes.” The banking business would be the best kind of business imaginable if banks were not obligated to return people’s deposits-but as incredible as it may seem that is exactly the way banks and credit card companies do business when they extend credit and loan money to customers!

In other words, your signed credit card or loan application (promissory note backed by your future labour) is converted into a “cash” asset by the bank. In fact, the bank stamps the back of the credit card agreement/loan application (promissory note) just as it would any other deposit, and then deposits it into a “transaction account” (a special account no different than a checking account that is opened under your name, but without your knowledge or consent). The bank then returns the cash to you (your “loan”), but also wants you to pay back this “loan” (of your own deposit) as if the bank had loaned you its own money. For these reasons, the bank does not fulfill its part of the loan agreement, thus nullifying the contract between the two of you and releasing you from any “repayment” obligation.

Despite what you may have been taught, this is the way the banks do business and this is what has happened in every single bank “loan” transaction you have ever been involved in. Bankers pray that no one will find out about the scam and ask for return of his/her original deposit, i.e. the signed promise to pay (asset) and expose the banking system for the confidence game that it is.

Example 2:

Here is a simpler, if idiotic, explanation of the above example:

John agrees to loan you £100 of his own money at 5% interest, but also requires that you put up a £100 cash deposit as collateral for the loan. Let us say that this was an acceptable loan arrangement for you and you entered the loan transaction, taking a £100 note from your pocket and giving it to John as collateral, and John then handing it right back to you and calling it the “loan”. Let us also say that you paid back the £100 plus £5 in interest as agreed, but that John failed to return the £100 cash deposit that you had put up for the loan.

John would be in breach of this loan agreement for two reasons: 1) He did not loan his own money, and 2) He did not return your deposit. Both are grounds for nullification of the original loan agreement and all such “loans” from banks, credit card companies, and other types of “lending” institutions are not different from the example.

Modern “lenders” accept your signed promise to pay as “cash” and deposit the signed promise to pay in an account in your name without your knowledge and use your deposit as the source of all the money you receive in the so-called “loan,” but never tell you about it and never return your original deposit. This is the way the banking system has operated since 1913.

If you fit in any of the following categories the program is designed for you:

* You cannot afford paying your credit card bills.

* You have no incentive for paying your credit card bills.

* You can tolerate negative entries on your credit report for as much as a year.

* You would like another chance, but do not like the idea of filing for bankruptcy just because of credit card debt.

We do not recommend people attempt termination of credit card debt without competent assistance. Banks and credit card companies have very clever officers and lawyers and can instantly recognize when you do not fully understand what you are doing. In such case you can be easily defeated. However, we can assure you that we offer the finest quality assistance available.

The process is much easier and faster than other programs, and before you know it you will be out of debt and back on your feet with a clear clean credit report. The program enables each individual to finally take control of their financial life and stop drowning in credit card debt without the need for bankruptcy.

The emotional and psychological effects of being in debt.

The economy is struggling to keep its head above water and everyone is feeling the effects. With very few options left, more and more people are turning to their credit cards to help keep them afloat in these troubling times. The problem with that is that eventually the personal debt piles up and, like weights tied to your ankles, slowly starts to pull you under.

But the damaging effects of being in debt go far beyond the material and digs deep into the emotional and psychological health of human beings. Studies have shown that being in debt does indeed take its toll on the emotional and psychological aspects of our lives. First, there is the very basic element of fear: the fear of losing one’s source of income and job, the fear of losing property such as one’s home or car, and the fear of one day being left with less than nothing and owing more than one can ever repay financially.

Areas around the world, especially in the UK, are feeling this fear more often every day. With the cost of living continually rising, it’s not difficult to understand how these fears come about. But that fear takes it toll on people in so many ways. You may start to have difficulty sleeping or maintaining any kind of focus. Stress becomes an everyday occurrence that gets harder and harder to deal with.

Many people are at risk of falling into a state of depression when they end up losing their jobs and simply cannot afford anything at all. This only multiplies the feelings of anxiety and depression to the point that serious medical help is needed. And it’s not just one person in the family who feels these pains. Every member is equally affected in some way.

Emotions such as anger and frustration take over and divide families that had once been much closer and happier. Feelings of hurt and resentment turn many people inward and, thus, they withdraw from their loved ones. This is becoming more common in places like the U.S.A, the UK and throughout Europe where economic debt has now seeped into the personal lives of their citizens and is causing a deep wound in the emotional and psychological lives of a large amount of the population.

The mental health concern is a serious one and needs to be addressed immediately. One way to prevent these ill effects is to address your economic situation regularly and reasonably. If you find any indication that there is the slightest build up of debt, with credit cards or otherwise, an immediate response is needed. Maybe your spending habits need to be cut, or it might be that you’ll have to make a tough choice of sacrificing property or materials that you enjoy but may not need. But believe it. Your emotional and psychological health is far more valuable and necessary than a burden that will weigh you down and ultimately cause more damage than it is worth.

If you have credit agreements taken out before April 2007 there is a new unenforceable credit agreement claim which is becoming more and more known about here in the UK.

It is possible to have your credit finance agreements –agreements such as credit cards, store cards, secured and unsecured loans, car finance agreements, and those with payment protection insurance ( PPI) ‘audited’. They may not comply with the terms of the 1974 Consumer Credit Act and if they do not they are unenforceable credit agreements. This means you can claim to have them written off. That is the balance completely cleared.

What cause us to get into Debt? The Possible Solutions?

Debt

The British people’s personal debt exceeds 1.1 trillion pounds. They have surpassed the United States in personal debt. Mortgage payments are the cause for 82% of this debt. The uncontrolled house price inflation is the main cause for this. Next an unusually high tax rate and over the top University fees are the main culprits. Some other sources of debt could be divorce, medical expenses, not planning well enough or being put on the dole from your job. One good thing to help the British people is new consumer protection laws capping credit card fees at twelve pounds down from thirty-eight pounds.

A solution for the Scottish people is what is known as a Scottish Trust Deed. This is an alternative to filing for bankruptcy. This is an agreement between you and your creditors for three years. At the end of the time period any remaining balance is written off. This trust deed is legally binding on all of your creditors. The terms of the deed are tailored to fit your situation. Another solution for the removal of debt is to consult a debt management agency. There are many offices out there who can give advice tailored for your situation. They can be found online or locally.

One solution they can give the British people is like the Scottish Deed. It is called an Individual Voluntary Arrangement. This is a formal agreement between you and your creditors for over sixty months. In that time, you pay them what you can afford. After that period is over, the remaining debt is written off. These arrangements can help reduce your debt by seventy percent. Creditors cannot call you once this arrangement has been put in place.

Another solution they can offer is Debt Management. This is like consolidation in the United States. This involves making one payment to the agency and they take care of the bills. In some cases, you can also freeze interest rates. You will not have any more contact with the creditors as the agency will do that for you.

The last solution they can offer you is a loan or to remortgage your home. The last resort to debt elimination is filing for bankruptcy. There are two types: voluntary and involuntary. You go to court yourself to file and the district judge decides whether to grant it or not. It costs four hundred and eighty five pounds to do this. The fee may be waived if you are poor or unemployed. Involuntary is when a creditor petitions the court for your bankruptcy if you owe more than seven hundred and fifty pounds. The advantages are: you are protected from creditors, your stress levels go down; after a year, the debt left over is written off and you’ll be able to make a fresh start. The disadvantages are: your assets will be sold to pay the debts. This can include your home.

The bankruptcy is put in the local paper for everyone to see. This will affect your credit rating for six years and it will prevent you from working in certain areas of employment. The best advice any debt manager will give you is try to keep your debt at or below twenty percent of your income level.

There is another solution.

If you have credit agreements taken out before April 2007 there is a new unenforceable credit agreement claim which is becoming more and more known about here in the UK. It is possible to have your credit finance agreements –agreements such as credit cards, store cards, secured and unsecured loans, car finance agreements, and those with payment protection insurance ( PPI) ‘audited’. They may not comply with the terms of the 1974 Consumer Credit Act and if they do not they are unenforceable credit agreements. This means you can claim to have them written off. That is the balance completely cleared. For NO FEES a solicitor with handle your claim. This is on a no-win-no-fee basis so it is risk free.

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