The 5 Secrets to Getting Out of Debt Fast

Home
>
Debt Relief
>
The 5 Secrets to Getting Out of Debt Fast

The 5 Secrets to Getting Out of Debt Fast

As they stare down at a teetering pile of bills, so many consumers wonder how they racked up such a large debt. The answer boils down to simple mathematics.

"On a basic, fundamental level, the problem is created by spending more than you make," says Brad Stroh, co-CEO of the San Mateo, California-based Freedom Financial Network, LLC, a company that specializes in debt resolution services.

The reasons for doing so, he notes, are varied:

? Spending addictions

? Lack of budgeting (mistaking the amount of money coming in and going out)

? Loss of income (reduced hours, layoffs, forced to leave the workforce)

? Increased costs (health-related expenses, fuel and other basic living expenses)

? A personal hardship (divorce, medical illness, loss of a loved one or other major changes in a person's life)

You can, however, get out of debt-but it takes commitment. Here are 5 steps to accomplishing your goal.

1. Start Planning-and Saving

"The only way to guarantee solid financial footing is through proper planning-and that's where most consumers go wrong," Stroh says. "Proper planning means monthly budgeting of cash flow, combined with saving for long-term security."

Stroh recommends saving at least 5% of your income to ensure long-term financial security.

"Of course, this percent will vary by age group and the individual's financial goals and objectives," he says. "Younger people can expect to spend their early years saving less of their income, paying off student loans and debts incurred during periods of lower income. Older individuals should be planning for retirement and saving a larger share of income."

2. Seek Professional Help

If you are facing financial hardship, do not procrastinate when it comes to seeking professional advice.

"People often wait too long," Stroh says. "If someone is living paycheck to paycheck, is behind on any revolving financial obligations (including credit cards), is using credit cards to pay for necessities, or is facing collection, he should consider getting immediate advice from a professional debt management firm or financial advisor."

3. Stop Spending

If you continue to spend money, despite your ever-growing debt, you likely have a bona fide addiction that requires psychological intervention.

"Debt problems are frequently symptomatic of more fundamental personal issues, such as reticence to address difficult financial problems," Stroh says. "Spending addictions can have many causes, including lack of personal confidence and fulfillment. Similar to many other addictions, a spending addiction can fill a void in an individual's life-albeit with a fleeting source of satisfaction. People with spending addictions constantly strive for the 'high' that they receive from buying clothes, cars and other goods. This leads to a long-term problem when they cannot meet the consequent financial turmoil that comes when the bills arrive. For anyone who may think he has a serious spending addiction, we advise seeking professional counseling or therapy to resolve the fundamental sources of this addiction."

4. Start Communicating

If you're like many consumers with outstanding debts, the last person you think about speaking with is the creditor-the company you've been avoiding at all costs.

"Not contacting your debt creditors to discuss and develop a plan for paying, settling or reducing the principal amount and/or interest on the debt" is one of the worst mistakes you can make, says financial expert Ivan Gelfand, president and CEO of Pepper Pike, Ohio-based Ivan Gelfand, Inc., and author of "Your Money, Your Future" (to be published in April).

He also recommends contacting relatives or friends for temporary assistance in reducing debt and making payments, which will lower your outstanding debts' interest rate.

5. Conquer Denial-Today!

Many consumers who recognize-and even accept the fact-that they have a spending addiction refuse to address their problems, according to Stroh.

"Budgeting is not fun," he says, "but dealing with creditors is even less fun. Many people will therefore bury their heads in the sand, hoping their problems will go away. Unfortunately, outside of winning the lottery or getting a windfall inheritance from a long-lost uncle, budgeting and consulting with a professional counselor are the only ways to successfully resolve financial problems."

--------

Fox Symes assists all Australians discover the truth about their debts and how they can rapidly reduce them. There are methods available to the Australian public and you can discover how to use these to assist you in reducing your debt with a free phone consultation from Fox Symes. Visit http://www.foxsymes.com.au or contact them directly on 1300 361 204.

In The News:

Yahoo! News: Top Stories

Dow closes down more than 600 points (AP)

AP - Confirmation that the nation is in a recession and signs pointing to a prolonged downturn sent Wall Street plunging once again Monday, hurtling the Dow Jones industrials down more than 600 points and erasing a huge chunk of last week's big gains. All the major indexes fell more than 7 percent.

Obama announces Clinton, Gates for Cabinet (AP)

AP - President-elect Barack Obama picked a national security team headed by former campaign rival Hillary Rodham Clinton and Bush administration holdover Robert Gates on Monday, and said he wants to consult with military commanders before settling on a firm timetable to withdraw U.S. combat troops from Iraq.

It's official: U.S. has been in recession since Dec. '07 (AP)

AP - The U.S. economy has been in a recession since December 2007, the National Bureau of Economic Research said Monday. The NBER a private, nonprofit research organization said its group of academic economists who determine business cycles met and decided that the U.S. recession began last December.

India demands strong action from Pakistan (AP)

AP - India demanded Monday that Pakistan take "strong action" against those behind the deadly Mumbai attacks, and Washington pressured Islamabad to cooperate with the investigation.

Palin implores Ga. Republicans to back Chambliss (AP)

AP - Alaska Gov. Sarah Palin urged Georgia voters to back Sen. Saxby Chambliss in Tuesday's runoff in an election eve appeal that underscored her popularity within the Republican Party and the GOP's efforts to stave off erosion of its shrinking Senate numbers.

Rice says she won't give Clinton too much advice (AP)

AP - Happily contemplating another woman as the top U.S. diplomat, Secretary of State Condoleezza Rice said Monday she will offer advice, privately, and then get out of the way.

Depression leads to internal fat in 70-somethings (AP)

AP - Older people who are depressed are much more likely to develop a dangerous type of internal body fat the kind that can lead to diabetes and heart disease than people who are not depressed, a disturbing new study found.

Man says God ordered him to ram vehicle at 100 mph (AP)

AP - A man who rammed his truck into a woman's vehicle on a highway early Friday told authorities he crashed into her while going more than 100 mph because God told him "she needed to be taken off the road."

NYC police investigating hospital that treated Giants' Burress (AP)

AP - Plaxico Burress was led out of a police precinct in handcuffs Monday after surrendering on a weapons possession charge, and authorities said that teammate Antonio Pierce is being investigated over his role in an accidental shooting at a Manhattan nightclub.

Asthma inhalers to go 'green' on Dec. 31 (AP)

AP - Last warning: Asthma inhalers go "green" on Dec. 31, forcing patients still using the old-fashioned kind to make a pricey and even confusing switch. The medicine inside these rescue inhalers the albuterol that quickly opens airways during an asthma attack isn't changing. But the chemicals used to puff that drug into your lungs are.

Obama names Clinton, Gates to lead foreign policy (Reuters)

Reuters - U.S. President-elect Barack Obama named former rival Hillary Clinton as secretary of state on Monday and said Robert Gates would remain defense secretary in a national security team charged with recasting America's leadership role in the world.

Stocks sink as data, Bernanke confirm economic woe (Reuters)

Reuters - The S&P 500 and Nasdaq tumbled more than 7 percent on Monday late in the session as economic reports showing further evidence of the worsening global economic climate were backed up in comments from Federal Reserve Chairman Ben Bernanke.

India demands Pakistan act decisively on Mumbai attack (Reuters)

Reuters - India demanded Pakistan take decisive action over deadly attacks in Mumbai it said were carried out by militants from its nuclear-armed rival, while the West urged cooperation to ease tension.

Bush calls flawed Iraq intelligence biggest regret (Reuters)

Reuters - President George W. Bush said the biggest regret of his presidency was flawed intelligence that Iraq had weapons of mass destruction and told ABC "World News" in an interview airing on Monday that he was unprepared for war when he took office.

U.S. in recession as Europe debates spending hikes (Reuters)

Reuters - The U.S. economy has slumped into a recession, the nation's business cycle arbiter declared on Monday, while European leaders clashed over how much public money to spend tackling a deepening downturn.

House to push $500 billion stimulus bill (Reuters)

Reuters - U.S. House of Representatives Speaker Nancy Pelosi met leading governors on Monday to discuss the size and shape of an economic stimulus package that one Democratic aide said was likely to cost around $500 billion.

Thai protesters consolidate hold on airport (Reuters)

Reuters - Thai protesters prepared to end their three-month occupation of the Prime Minister's office on Monday to consolidate their grip on the main airport ahead of a court verdict that could dissolve the elected government.

Alabama mayor arrested on corruption charges (Reuters)

Reuters - Federal authorities arrested the mayor of Birmingham, Alabama, on Monday in a corruption probe surrounding a massive sewer bond debt that has forced Jefferson County to the brink of bankruptcy.

Hawkish Obama names Clinton as top diplomat (AFP)

AFP - Barack Obama on Monday nominated Hillary Clinton to be his "tough," "smart" secretary of state and his former foe vowed to give her all to steer America through a perfect storm of global crises.

Mumbai attacks: India demands Pakistan take 'strong action' (AFP)

AFP - India on Monday formally accused "elements" in Pakistan of being behind the devastating Islamic militant attacks in Mumbai and demanded that Islamabad take "strong action".

The 5 Secrets to Getting Out of Debt Fast

Debt Relief Debt Relief