Debt - Drowning in It? 8 Tips to Use Debt Wisely
By Fern Alix Larocca

Our country is drowning in debt and most of us are, too. It’s no secret that bankruptcies and mortgage defaults are on the rise. So what do we do? The media would like us to think that we are just bad consumers paying too much money for designer jeans, BMWs, and the latest iPod. But the reality is that most people get in debt because something came up that they didn’t have the funds for- something like your medical insurance premiums just went up 50% or you got laid off from your job or your adjustable rate mortgage has now adjusted to sky high levels.

Credit isn’t all bad if you use it and manage it well. You can get control of your debt and use it to prosper with these 8 tips:

1) Make sure you have enough cash reserves to handle a lay off or a car repair, etc. At least a minimum of three months gross salary is what I recommend; more if you have a lot of assets or debt. As we are bombarded with advertising messages to get more, buy more, and have more; it’s easy to forget how much we can do with less, less, less.

2) Keep your credit score high and up to date. You have to have credit in order to get credit, and a high credit score is a good thing. Find out your credit score with a free annual credit check offered on the web. I buy stuff online all the time so I make a point of checking my credit to look for any unusual purchases that aren’t mine.

3) Take out debt for things that can appreciate like your business or your home or not your car or golf clubs. I started my business in the eighties on a credit card cash advance. Risky? Oh, yes. But it was the best investment I ever made, and I continually use short term loans to grow my business. But pay cash for the car and other toys.

4) When the going gets tough, the tough go to Mom and Dad (or Auntie Fern). Make sure that your parents, friends or relatives feel good about lending you money by having the loan structured by an organization such as VirginMoneyUS. Remember, you are not a loser. You just need some financial help. So set it up right so there are no misunderstandings. I am much more likely to loan money out to family or friends if there is a written agreement about the terms.

5) Take on debt to invest in your most precious asset- you. Your income needs to constantly go up in order to keep up with taxes and inflation. Don’t be afraid to take out a loan for classes that will improve your job skills and get you more bucks. I took a 2 year online course from Coach University to increase my skills and be a better Financial Advisor. It’s much better that TV and more fun than the local bar. I got to learn new skills, meet interesting people and fatten my wallet at the same time.

6) If you are in over your head, help is on the way. Check out the National Foundation for Credit Counseling and the Association of Independent Consumer Credit Counseling. Members of these two organizations do not employ commission-based counselors and are more highly regarded than some of the other organizations.

7) People often overlook credit unions. Credit unions usually have lower interest rates on loans for members and are more willing to work with people with bad credit than the local bank.

8) Don’t worry about mortgage debt. Keep it manageable but keep it. It is usually your biggest tax deduction. That old school garbage about paying off the mortgage and living debt free- forget about it! Most retirement plans will distribute money that is all taxable. If you paid off your entire mortgage then you could find yourself paying more in taxes than you did when you were working.

Keep in mind that almost every big purchase that you will make in your life- your home, your car, your loans, your investments-may involve a commission salesperson. So it pays to be skeptical and cautious. The old adage- if it sounds too good to be true, it usually is-still applies. Take your time, take a deep breath and use your intelligence to make the right decision for yourself. It will pay off.

2008© Fern Alix-LaRocca CFP® All Rights Reserved

Fern Alix-LaRocca is a Certified Financial PlannerTM and Financial Coach with over 24 years experience as a fee-only Financial Advisor. Stop losing money and increase your net worth by subscribing to her free e-newsletter at http://www.wholeheartedway.com You will get 4 free bonus reports and your information is always confidential.

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How to Settle Debt For 50% of What You Owe and Be Debt Free in 30 Days
By Richard G Cooper

Question: What do you do when you are trying to refinance your mortgage to consolidate your debts but there isn’t enough money to pay all those bills in full?

Answer: Use the proceeds of the mortgage financing to settle all the debts owed for less. This solution is ethical, legal and can completely resolve $78,000 of credit card debt for less then $28,000.

Do not let anyone tell you it cannot be done. We do it for our clients every day, and all these folks were staring bankruptcy in the face only 3-4 weeks prior to having their debts all settled for less.

I have been in the debt relief business for some time now and we have solved some serious debt problems; my company Total Debt Freedom has had somewhat of a love affair with settling debt using mortgage refinancing. We are considered top in our field in Canada. To date we have helped mortgage brokers and homeowners alike salvage millions of dollars in mortgages that would have never been approved without our help.

For people who have plenty of equity in their homes and can pay their bills off in full, debt settlement isn’t your solution. Get your mortgage closed and pay your creditors in full otherwise you could end up with bigger problems then you bargained for.

Debt settlement and mortgage refinancing works best in situations where you need to avoid bankruptcy, something like this: lets say you owe $50,000 in credit card debt and your mortgage agent can only get you approved for a $25,000 2nd mortgage to pay off that debt. You would normally have a serious problem, but not with a debt settlement solution.

My company has resolved problems like these thousands of times by negotiating a huge reduction in the debt. If you can get about half of what you owe out of your home equity, we can settle all your debts and that includes the fee for the work. If you are being harassed by bill collectors then consider how debt settlement and a mortgage can solve your problems.

Educated homeowners with sufficient resources can actually accomplish this on their own. There are however several things to consider such as the cost of borrowing, how your credit may be affected and any how deep in debt you really are.

Talk to a reputable debt settlement company like at http://www.totaldebtfreedom.ca - get a free quote and see if debt settlement is the right solution for you.

Richard Cooper is Founder & CEO at Total Debt Freedom Inc. Canada’s most respected debt settlement company. Total Debt Freedom offers debt settlement plans that can save you 50-70% of what you owe and get you debt free in 1 - 3 years. http://www.totaldebtfreedom.ca

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How Do I Get Out of Debt?
By Michael Peterson

It’s a question we’ve all asked ourselves; anyone who’s ever owned a credit card, taken out a student loan, financed a car, or paid a mortgage has accumulated debt. Debt can feel overwhelming, but you don’t have to be a slave to it. You just need a little common sense and some budgeting savvy. Remember, you own the debt - not the other way around.

If you follow three budgeting rules, you can be debt-free twice as fast than if you carry on using traditional guidelines (like the minimum payment) and spending habits (like reasoning, “I can’t afford this now, so I’ll charge it”). Just because the rules are simple, it doesn’t mean that they’re always easy to follow. Some will take very little effort; others may be more difficult at first. But once you create a healthy financial habit and witness the results, you’ll never regret it.

Step 1. Cut spending. If you’re not sure where to start, try to track your spending for one week. Even one day’s tracking can be helpful. Notice where you’re letting your money go, apart from your bills, mortgage and car payments, and groceries. Maybe you buy a cup of coffee or a bottle of water every morning on your way to work. Perhaps you order pizza every Thursday for the kids. Watch where your money goes, and see where you can make some cuts.

Budgeting is not about total deprivation; it’s about being sensible. Treat yourself to a latte or a doughnut only on Fridays. Order pizza once a month instead of once a week. If you tailor your spending even the slightest bit, you will save money that can go directly towards debt removal.

Step 2. Pay off your credit cards. Commit to making a fixed monthly payment at least a little above the minimum (5%-10% is best, if you can swing it). Make that payment every month, even as your minimum payment goes down. You’ll pay off your card in record time, and after it’s paid off, you can use that monthly contribution towards other debt, or put it into a savings account.

This really works. Check out the calculator on bankrate.com at www.bankrate.com/brm/calc/MinPayment.asp to find how making a fixed monthly payment to your credit card can save you thousands of dollars in interest and knock several years off of your debt.

Step 3. Never put more money on your credit card than you can afford to pay off each month. Think of it as the “golden rule” of getting out of debt. As much as it pains you to put off buying that sleek new iPod or leather sofa or cashmere twin set, you must only charge what you can afford to pay off completely. Treat credit card purchases like cash. That way, you can organize and simplify your spending without paying the back-breaking interest on purchases you can’t really afford.

Remembering and sticking to these three steps will put you on the fast track to getting out of debt. The key is not to abandon these good habits. It’s tempting, especially during the holidays, or special occasions-sometimes even after you’ve managed to save some money-to break one of the rules. But even leaving $50 on your credit card from last month can lead to a financial train wreck. If you can only make your committed payment the next month, you’ll begin to fall behind again, and the credit card companies will charge you interest on all the money that carries over each month.

The next time you ask yourself “How do I get out of debt?” remember: Cut spending. Make fixed payments. Don’t over-charge. You’ll be amazed at how much faster your debt recedes, and how much money you can save. It’s an easy, sensible start to a process that could take over 30 years if you don’t make a commitment to those three rules. Wouldn’t it be better to enjoy life debt-free?

Don’t stop there.You can do more than get out of debt. You can start saving towards your future. Every week, two weeks, or month-whenever you get a paycheck, pay yourself first. Before bills, before groceries, and especially before entertainment, you must put a percentage of your paycheck into a savings account. And don’t dip into it! You won’t accumulate savings unless you leave it alone. If your company offers a 401(k) option, take it. You won’t even miss the 5% or 6% that’s already come off the top of your paycheck. If you don’t have that option, consider putting the savings into a CD at your bank. If you pay yourself first, you will save money that will be useful for financial emergencies, and also as a nest egg for investment later on.

© 2008 DebtGuru.com®. Michael Peterson is a co-founder and Spokesman of American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization that has assisted thousands of individuals and families with their financial situations through seminars, education, counseling services, and, debt management plans. For more information, and free consumer resources visit http://www.debtguru.com

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Living on a Budget - 5 Easy Steps
By Jamie Hribal

With gas prices nearing $5 per gallon, unemployment at an all time high, the national foreclosure rate at an absurdly increased rate and food prices driving the market, more families are looking for ways to save money and budget just to stay afloat. It may be time for Dick and Jane to sit down and scrutinize how their paychecks are being spent.

Did you know that the U.S. savings rate is the lowest on record?
Or that over 40% of U.S. families are spending more than they make?
Does it shock you that some 36 million households– that’s one out of every 73– filed for bankruptcy in 2003?
Did you know that the average credit card purchase ends up costing 112% more than if cash were used?
So what is the remedy for the hundreds of thousands of families living paycheck to paycheck just to make the minimum payment on their credit cards?

1. Create a budget: Analyze exactly what expenditures are being made. (i.e. rent, phone bill, utilities, groceries, etc.) The first step is knowing what goes in and out of your household each month. Amazingly, the majority of individuals NEVER sit down and total up the exact amounts that are being spent out of their hard earned income. Hence the saying, “easy come, easy go

2. Eliminate unnecessary expenses. One great way to eliminate a large portion of expenses is in groceries… for example: buy a bag of rice instead of the box of instant rice.The 10 minute difference definitely out-weighs the $4.00 mark-up. Avoid buying “convenient foods”, “to go packs” and the like. Also, if you’re not used to grocery shopping, this is the time to start; no more eating out!

Also, take a lesson from mom and dad, brown bag lunches can save you literally hundreds of dollars throughout the year versus ordering out or running down the street to the local fast food joint, besides you can eat much healthier.

3. With crude oil estimated to hit $180/ barrel, one of the biggest ways to save in society today would be to car pool with co-workers to go to work, with other parents to pick up the kids, or any other time you can.

4. Next, only spend what you can afford to avoid paying high interest rates and pay them off in full each month.Credit cards are important to establish a credible credit rating, but paying off the total balance each month can end up saving you literally thousands throughout ones lifetime. A $1,000 charge on an average credit card will take almost 22 years to pay and will cost more than $2,300 in interest ($3,300 TOTAL) - if only the 2% minimum payments are being made. Imagine $30,000 in charges!!! If you are over $8,000 in debt, a debt settlement company can reduce that amount by up to $.60 per dollar owe, although during the initial phases of any credit program your credit score will take an initial hit. I recommend this as the fastest and least impacting program for individuals that qualify.

5.Have your creditors work for you.If able, have your billing cycle changed so all of your bills come when you know you will have the money for them each month to help you keep a closer eye on your spending. Notify them if you are going to be behind, BEFORE YOU ARE BEHIND, surprisingly, they can be rather accommodating. However, be wary of “universal default laws” which I discussed in my article titled Predatory Lending and Credit Cards.

Be wise with your spending and avoid predatory lending at all costs. Be conscious of your spending and most importantly ask plenty of questions, you will be surprised at how many resources are available.

Jamie hribal is a senior debt counselor for a private firm. Helping individuals and families with financial hardships or facing foreclosure which benefit from debt settlement and mortgage modification. For more information please visit http://www.Mydebt101.Com

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There is some debate among financial planners as to the best way to pay down debt. Some say paying the highest interest rate debt first is the best way; others say paying the smallest balance first is the best way.

Both methods have advantages and disadvantages, so we’ll take a look at both, and help you decide which method is best for you.

Method #1 - Highest Interest Rate

In this method, you focus on paying off your highest interest rate debts first. The basic steps in this method include:

1. List all debts in order from the highest interest rate to the lowest interest rate. 2. Commit to paying the minimum payment on every debt. 3. Determine how much extra can be applied to the highest interest rate debt. 4. Pay the minimum amount plus the extra amount towards the debt with the highest interest rate until it is paid off. 5. When that debt is paid off, apply the amount you were paying to the debt that is paid off to the next highest interest rate debt until paid off. 6. Repeat until all debts are paid in full.

This method is the best method mathematically, as you will pay less interest in the long run.

Method #2 - Lowest Balance

In this method, your focus is on the debt with the lowest balance. Note: this method was made popular by Dave Ramsey and is often called the Debt Snowball method.

The basic steps in this method include:

1. List all debts in order from the smallest balance to the largest balance. 2. Commit to paying the minimum payment on every debt. 3. Determine how much extra can be applied to the smallest balance debt. 4. Pay the minimum amount plus the extra amount towards the debt with the smallest balance until it is paid off. 5. When that debt is paid off, apply the amount you were paying to the debt that is paid off to the next smallest balance debt until paid off. 6. Repeat until all debts are paid in full.

This method may not be the best method mathematically, as you will pay more interest in the long run. However, this method allows you to pay smaller debts off faster, which may give you the motivation you need to stick to your debt payment plan.

So, which method is best for you? It depends…

Method #1 is best for you if:

* You have debts with similar balances * You have discipline to stick to your debt repayment plan * You are a numbers person, and you realize the benefit of paying off the highest interest rate debt first

Method #2 may be best for you if:

* Your debts do not have similar balances - i.e., you have a $500 credit card balance, a $12,000 credit card balance, and several in between * You need motivation - paying off the smallest credit card balance may be the motivation you need to stick to your debt repayment plan * You don’t mind paying more interest over the long run in exchange for getting rid of smaller balances first

Tip: Why not use a combination of the two methods? Using a combination of both methods allows you to feel a sense of accomplishment by paying off that first debt (the smallest balance credit card), and gives you the motivation to start working on the next debt (the debt with the highest interest rate).

Remember, the method that works best for you is the one you will actually use. The most important thing is to make a plan and stick to it so you can live debt free.

Kristine A. McKinley, CFP, CPA, and author of Living Debt Free, teaches individuals and families how to invest and plan for retirement, college, and other financial goals. Kristine offers financial and tax planning on an hourly, fee-only basis.

Is credit card debt keeping you up at night? Learn how to get out of debt and on the road to financial freedom => http://www.livingdebtfree2008.com

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Will You Succumb to Debt? Take the Debt Test
By R. M. Smith

Financial disaster caused by excessive credit card and other debt can creep into daily living with treacherous and cumulative effects. There are leading indicators that can help determine whether or not you will succumb to debt. Take the Debt Test to find your level of debt contamination.

Answer the following 25 debt-related questions. Total your YES points. Then, find your Debt Range at the bottom to determine the likelihood of succumbing to debt.

- A collection agency has contacted me about unpaid bills (10 points)

- I have one or more leased vehicles (5 points)

- I am making some minimum monthly payments on credit card debt (5 points)

- I charge purchases to credit cards that were previously paid for in cash (5 points)

- I have elected to not carry health insurance (10 points)

- I have elected to not carry vehicle insurance (10 points)

- I have elected to not carry homeowners or renters insurance (10 points)

- I worry or lose sleep over my financial situation (5 points)

- My wages are being garnished or assigned (10 points)

- I skip credit card payments in order to pay for food, shelter or utilities (10 points)

- I am behind in paying for housing, vehicle or utilities (10 points)

- I am occasionally late in paying bills or sometimes incur late fees (5 points)

- Family relationships are strained as a result of money problems (5 points)

- I borrow or transfer money in order to pay bills (5 points)

- 40% or more of take-home pay goes to pay off debt (10 points)

- I do not have at least 3 months living expenses held in savings (10 points)

- I have given thought to filing for bankruptcy (10 points)

- I have thought about starting a debt consolidation plan (5 points)

- I use or have used “cash advance” or “payday loan” services (5 points)

- I use a home equity line of credit to pay credit card debt or other bills (5 points)

- My debts are increasing while my income is the same or decreasing (5 points)

- I am in the process of or near foreclosure or property repossession (10 points)

- A money-spending plan or budget is something I do not use (5 points)

- My credit cards are at or near the spending limits (10 points)

- I don’t balance my checkbook each month (5 points)

Total your YES” POINTS to determine your Point Range indicated below.

POINT RANGE:

- 0-15 Congratulations! You appear to be doing a good job of controlling your debt and managing your finances. Being debt free can eventually lead to personal financial freedom.

- 20-35 You may be headed down the proper financial path but a review by a qualified financial planner might be a good idea.

- 40-65 Your financial condition may be a concern. A financial assessment by a licensed financial planner is recommended.

- 70-95 Your financial condition could be serious. Debt counseling help is something you should seriously consider.

- 100-185 Your financial condition may be critical. Debt counseling help is essential.

Robert M. Smith, CFP®, is founder of Debt Mentors, LLC. His financial planning practice and website are devoted to helping people get out of and permanently eliminate debt. Bob educates and assists individuals who have money management and personal finance concerns. His primary focus is cash flow planning, debt elimination, and wealth building. For more information go to: http://DebtFreeLivingPlan.com

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3 Must Do Tips to Become Debt Free
By Neil Bradley

You are deep in the sea of debt. I know you are struggling but compared to others, you are way better because you are seeking for a way to improve your current situation. You want to get out of debt and become debt free. Good for you. However, maintaining your current lifestyle will not get you closer to paying off your debts!

Debt free living is one dream that most of my readers have and if you take action or make the following changes to your life, you will move closer to your dream. If you stay put, nothing will happen or worse still, you will incur more debt.

How to Become Debt Free Tips #1 No Credit Cards You must immediately cut off your credit card usage if you have one or a few in your wallet now. Cancel the card if you are not on a contract. Negotiate with the banks to find out a way that you can pay off the credit card debt owed. From now on, start spending with the cash that you earn.

With a credit card, you will not think twice before purchasing something because a credit card gives you the illusion that you can afford every item that you see on a display shelf. Trust me, without a credit card, becoming debt free will no longer be a dream, it will become a reality by tomorrow.

How to Become Debt Free Tips #2 Negotiate Debt Repayments You will be shocked to find out that most financial institutions are more than willing to cut down their interest charge if you are committed to pay off your debt. The fact is that they want repayment from customers fast and the rising rate of bankruptcy is making them lose money.

Give it a try. Call up your bank today. Tell them that you are prepared to pay off your debts within a certain period and inquire for the best repayment plan that they can come up with. Remember to focus on slashing the interest portion. You can become debt free much faster with this little trick.

How to Become Debt Free Tips #3 Start Saving I know the rising gas price is very disturbing. However, there are people who are living debt free under these circumstances and there is nothing that can stop you from becoming just like them! Start saving. You can make yourself a savings tin and start depositing all the coins that you receive. This is a simple form of saving which you can start with!

If you find problems to draft your own plan to become debt free, you can always get yourself a free debt relief video which will provide you with the tricks and steps to gain financial independence!

Neil Bradley is a personal expert who cares for his readers, especially those who have a dream of achieving financial success in life. His personal finance tips has helped hundreds of individuals to achieve financial independence and success.

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Don’t Suffer Debt Alone
By J Daniel

Debt is a worldwide problem. From individuals to large commercial organisations to governments & countries, debt affects everyone! While this is a scary thought, it can also bring a measure of comfort. How?

One reason you can draw comfort from the abundance of debt is that you are not alone. Sometimes it can feel like nobody knows what you are going through, nobody understands. You are the first to be in this situation and it doesn’t look like you will ever get out. Wrong! You are not the first and you will not be the last. Right now there are probably hundreds, if not thousands of people in a similar situation. There have been thousands before you, and best of all, many of them succeeded in getting out of debt. So how did they do it?

This brings us to our second reason to draw comfort from the abundance of debt. As with anything in life, there is a positive and a negative. Something always exists at the other end of the scale to counterbalance the effects of it’s opposite. The same is true of debt. With an abundance of debt comes an abundance of debt solutions. There is no need to suffer your debt alone when there are so many professional solutions to choose from. Here are just a few:

* Debt Management * Debt Consolidation * IVAs * Remortgages * Trust Deeds * Bankruptcy (a last resort)

These solutions have been specifically set up to help people get out of debt. Which one is right for you will depend on your circumstances, but you can be confident that there is a debt solution available to suit your situation.

If you are struggling with debt & feel there is nowhere to turn, take action now & begin your journey to debt freedom!

If you want to know more about debt management, debt consolidation, IVAs & the other debt solutions that are available, you can read more about them at GregoryPennington.com.

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The Art of Debt Settlement
By Dan Delgado

Thousands have tried it, many work at it and many succeed. It is debt settlement, a rewarding and exciting art that has become popular amongst Americans.

People have negotiated since the beginning of time, it is an ageless art many have mastered, to this day it is still in fashion and it will never go away. So why do so many of us pay for someone else to do what should come naturally to us? Is it lack of time, fear, inexperience? Negotiating is like riding a bike, once you get on it you do not want to stop.

No one should pay high amounts of money to learn to do something that is natural, many are taking advantage of the fact less people exploit their natural talents. Negotiating is a repetitive exercise much like jogging or swimming, once you get going no one can stop you. Most debt settlement negotiations are simple machine like exercises. As you go along you will find out that the next negotiation builds on the principles of the prior negotiation, it is like building something out Lego Blocks. repetition, what you do to negotiate one account you do with the next and so on.

The part where negotiation really turns into an art is when one learns to bluff a creditor or collector into thinking what you want them to think. It is like playing cards and holding on to that ace and using it when it is most appropriate. Think of debt settlement as pitch selection in baseball, you never show a batter the same pitch twice. Most creditors and collectors will settle accounts, that is their main mission and it should be yours as well, the most important part is what you do to help determine the outcome that matters.

An example of a good hard nose negotiator may be to know when to settle with creditor A and not with B collector, when to return a phone call and when to send in a letter. When to let them wait and when to come after them. today, do it yourself debt negotiation is taking force in America, negotiators are starting to coach the masses and passing on the knowledge that once before was so sacred it could only be obtained by paying ridiculous amounts of money upfront. No more, there is a revolution and it is being lead by masters of negotiation, now is the time for Americans to stand up and take notice, these hard financial times are opening the door for many of us to negotiate our own debt, the question is who is ready to take on the knowledge?

Now is the time to learn a new art and help our financial situation turn for the best, those of you willing to give a shot to an age old tradition and that think are ready for an exciting ride will most definitely enjoy learning the art of debt settlement. Welcome to our world, we hope you succeed!

Dan Delgado is an active unsecured debt negotiator, he has experience negotiating personal as well as business debt. For more information please visit http://www.pemperandgartle.com

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Relief From Debt Collectors
By Daniel Cho

Debt collectors have been correctly labeled as the worst and most fearsome type of collection agents. These collectors have been known to strike fear and terror into the hearts of even the most hardened debtors and paralyze those who are trying to get their finances under control. Therefore, the first thing to do is take control, not only of your finances, but of yourself and any collection actions taken against you. Take control, don’t ignore collection attempts, and don’t be afraid.

Debt collectors operate from a computer driven database provided to them by the very people you owe money to, your creditor. By the time a collection agency buys your account, it has been ‘charged off’ for non-payment and sold for between 8 to 12 cents on the dollar. Debt collectors make their money off of commission, between 14-25 percent, and in their plight to stack commissions many debt collectors have stepped across the line of what they can legally do as well as the line of decency. Many debt collectors seldom use their real names, and usually ‘job hop’ or bounce from account to account, taking advantage of the anonymity of the telephone.

On the surface, the relationship between a debtor and a collector seems greatly uneven. Collector’s will see themselves in a position of power, many more than willing to take advantage of a consumer with several intimidation tactics. Many of which include calling you at work, threatening to talk with your family or neighbors, threatening wage garnishment, and in rare and extreme cases, threaten to arrest you. Consumers rarely complain about these tactics, but a smart consumer would review his rights under the Fair Credit Reporting Act. Learn exactly what the debt collector can and cannot do and challenge them on violations. Don’t forget though that the best approach would be a professional and honest one. Remember to keep your tone even, and to be honest to yourself and to the collection agencies. Don’t be afraid to tell them what day and what time they may call, that you are reviewing debt relief options, or how much you can afford to pay and when you can afford to pay it.

Several finishing helpful tips:

- Don’t forget that debt collectors are using a front to receive payment.

- Don’t forget your rights under the Fair Credit Reporting Act.

- Don’t forget that you are entitled to all information in relation to the debt, so ask for them!

- Lastly, try audio taping your conversations with the collector and letting them know beforehand. The word on the grapevine is that it should give them a good scare.

Daniel Cho is a financial writer for Select Debt Relief specializing in consumer debt and alternatives to bankruptcy. Currently he studies Business and Theatre Performances at the University of California at Berkeley where he is an active member of the Lambda Phi Epsilon Brotherhood- Delta Chapter, and Theatre Rice- Modern Asian American Theatre Performances.

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