While no specific attitude or behavior can be directly tied to a poor person, the aggregate of some behaviors and choices can definitely impact a persons ability to become wealthy, and break out of the poor mindset.

The overall premise to thinking poor is not being able to separate the “wants” from the “needs” of life, to only purchase the “wants” when it is prudent to do so, and then only at a bargain. The poor mindset makes people generally think they “need” things that they merely want, and lack the self-control to delay the gratification until they can actually pay for it.

The poor mindset also causes people to generally fail to, or fail to recognize the need to, plan. While planning, budgeting, etc., are generally considered mechanics of debt reduction and wealth building, actually sitting down and creating these tools, working through those defined steps actually takes some motivation and desire, and that’s behavior.

Failing to sit down and plan plays hand in hand with their reluctance to delay gratification. A paycheck on Friday funds a vice for the weekend, regardless if a bill is due on Monday. This usually causes a poor mindset in the person to reach out to the first available means of credit, which is usually a pawn shop, payday loan center, or the likes of companies that charge usury rates to borrow money. Come next payday, pay the loan off, they’re once again broke, and the cycle repeats.

Living within their means is also usually a concept that escapes the poor mindset. People living in 1 bedroom apartments with a $30k car sitting outside are not making living within their means, and expensive cars, especially at the beginning of debt reduction and wealth building is a huge stumbling block.

These are a few of the attitudes and behaviors of the poor mindset. Remember, acting poor will make you poor, regardless of how wealthy you are.

Continue reading this post…

You have options when you want to legally eliminate debt, but most of these options have negative effects on your credit score. I will start out with the worst option of them all. It will have the worst effect on your credit. The last option I give will be your best option and will help you to maintain a good credit standing.

The first option is bankruptcy. It is the number one option most people think about to legally eliminate debts There are many people who see no other option than to file for bankruptcy. Their reasoning is that after 7 years it will not longer be on your credit report. This is not true. Bankruptcy is a 10 year mistake. It has the most damaging effect on your credit because you are admitting to the public that you can not pay for your debts. Not only is this very humiliating, but it will be extremely hard for you to even get a credit card for the first two years. You will also continue to pay the highest interest rate which in turn costs you more money than if you had not filed for bankruptcy.

The second option is debt consolidation. Debt consolidation is where you roll all of your debts into one loan. You may not think debt consolidation as a way to legally eliminate debt, but it is. The only way debt consolidation helps is if you can find a loan that has a lower interest rate than the debts you are paying off. Also, you will need some type of collateral to put up for the loan. If you are a home owner you could likely get a home equity loan, but the interest rate will probably be high. Many people who get debt consolidation loans feel the relief of a lower monthly payment at first because the monthly note is generally lower than all the monthly credit card minimum payments. When they realize they have extra money they start spending it and are soon back in debt up to there ears again. Debt consolidation only works for people who are responsible enough not to get back in debt.

The third option is the best option. This option is called paying your debt strategically. You are probably aware that you have to pay more than the minimum payment each month if you want to ever get your debt paid off. The secret to this method is knowing how to pay your debt and when to pay it. You may also think you have to make more money to pay more on your debts. In fact, if you know the secret to paying off your debts you can do it without ever getting a second job. Paying off your debt using this method also helps you to increase your credit score each month.

Continue reading this post…

The short answer is yes – honest debt settlement companies do exist. Now, let’s closely examine why it is you’re inquiring. If you’re experiencing financial difficulty, and have a strong desire to avoid bankruptcy, you’ve probably found an infinite amount of information from various sources relating to debt settlement firms. And, much of this information contains either negative remarks or plenty of cautionary tales.

Are these stories true? In fact, many of them are – but much of what you’re hearing about the entire debt settlement industry is also simply not factual. If you take the proper time to carefully research any firm you’re considering to assist you with debt settlement, you should be just fine. Here are some tips to help you choose the right company:

· Better Business Bureau – It’s a good idea to choose only a firm that is a Better Business Bureau member. If, however, you’re considering a firm that is not, you’ll still have access to any negative information regarding this particular company on the BBB website. Typically, it is highly recommended to choose a BBB member due to the fact that this reflects a willingness on the part of that particular firm to provide excellent customer service. And, of course, beware of any debt settlement company that has significant and consistent complaints; if you can locate a debt settlement company with zero complaints, this is the way to go.

· Fee Structure – As you are probably aware, most debt settlement firms take their fees up front, and these fees can range anywhere from 15%-25% of your overall debt. Obviously, if this is the case, the total fees paid can be outrageous if you’re not careful when choosing a debt settlement company. The problem I have with companies who take their fees up front is that for several months all of your money would be finding its way into the pockets of the debt settlement firm, and nothing is being set aside for your creditors. Be very careful, take your time and conduct lots of research so that you’re able to find a credit card debt settlement company that doesn’t expect its fees up front; your best bet is to locate a company that charges its clients based on performance. These fees typically range from 15%-25% of the amount of money you actually save, and are due only after the desired results have been achieved.

· Sales Tactics – Ah, my favorite; Have you ever walked into a furniture store, only to be attacked by several salespeople? It’s not a comfortable feeling, is it? As a matter of fact, it’s downright annoying. As a side note, I’ve learned to put my cell phone up to my ear when I first enter one of these stores, and I’ve never met a salesperson who was rude enough to actually approach me during what they thought was a very intense and private telephone conversation. Okay, back to debt settlement company sales tactics. The bottom line is, either you’ll talk with an individual who is extremely knowledgeable in the area of debt negotiation, showing an interest in your concerns and happy to share their opinions, knowledge and experience with you, or…well, you’ll talk with a high-pressure “furniture” salesperson who wants nothing more than to close the sale and take your money. If this is the impression you get, run the other way – fast. If this debt settlement company’s first communication with you is based on what’s in their best interest, and not yours, how do you think the overall customer service experience is going to be? This is a difficult time for you, and you’re going to want to choose a debt settlement company whose employees are interested in your needs, concerns and providing you with the best service available.

Continue reading this post…

If you’re virtually swimming in debt, unable to make the monthly minimum payments on all of your debts, and your mind is in a state of bewilderment at how you could possibly have gotten yourself into this situation, and you have absolutely no idea how to dig your way out, then it is time for you to take control over your situation.

Be sure to make the minimum payment; it will keep your credit report looking good as far as reporting agencies are concerned. You pay on time, and you pay what is necessary. Unfortunately, you are playing right into the hands of the creditors. The less you pay on your balance, the more interest they make. Lets say you have a balance of $6,000 on a credit card. With an interest rate at 17.5%, and paying the minimum $90 each month; you will pay around $15,240 in interest and possible more over the 20 years it takes you to pay it off. Wouldn’t you rather use that on something else?

The underlying principle that you must hold in your thoughts to gain this understanding is that you are working your wealth plan. A wealth plan makes all repayments seem insignificant. A wealth plan lets you live a normal life without the worry and fear of not being able to pay and falling behind in the mortgage repayments. It really does take the stress out of paying off your debt.

You can find several easy ways to come up with money to pay off debt in your daily expenses if you try. You can come up with extra money by saving on car expenses, food, energy costs, and clothing. You might carry a little notebook with you for a week and write down your expenses. See if you can figure out where some extra money is going that could be used to pay down your debt. You might be surprised.

Continue reading this post…

We are all living in an age where the amount of debt we have never seems to go down, the debt always seems to be increasing. If you have a debt problem and are looking for a debt relief solution then the best option is to put a debt consolidation plan in place. You would probably ask why debt consolidation?

It is one of the best ways of getting a debt relief. Today there more people in debt thanks to financial vehicles like credit cards, home loans, car loans among many others. Due to a skyrocketing interest rate, most people just keep sliding deeper into their debts. So instead of getting out most people are going into the quicksand. So the only option is to find a way to minimize the debt or go through what is known as debt reduction.

Whether you are looking for credit card debt relief or debt reduction in sub-prime mortgages, a debt consolidation plan can help you. It might take you a little longer to consolidate your debts but then it is worth the while. When you are looking in the market for debt settlement options, it is recommended to go for the best that is out there. But the question is how will you find the best debt relief solution? So here are two tips that might help you:

Debt Relief Company: The first aspect that you need to look for in debt relief services is the reputation. The reputation of a company will always precede the company. You need to so a little bit of research in the market and get some names from your colleagues, friends and family. Visit the website of BBB (Better Business Bureau). Here you will find complaints if any regarding a particular debt settlement company. Although most companies will not give away their existing or previous client details but there is no harm in trying to speak to some of them to gauge the efficiency of the services of debt consolidation companies. You can also check for the legitimacy of a company with BBB.

Your current financial situation: Whether you are searching for credit card debt relief or any relief from any other debt, the first and the foremost is your current financial situation. There are several companies out there offering debt relief help but only a few who will understand your financial situation and make a plan on the basis of that.

Continue reading this post…