The Crisis Starts When...

c r i s i s starts when …

What happened to those grand plans for our future ?

Will we be able to return it?

Time To Seek Help What should you do? You need a clear picture of your financial standing.

Make this Debt List. NOW! Debts Minimum Payment Rates of Interest Outstanding Amount Mortgage Auto loan Credit card 1 Credit card 2 Credit card 3 Other loans

Calculate Your Disposal Income Look through your “Debt List”. Pay the higher interest rates debts. Do this Amount Note 1) Total up Income From all sources 2) Minus Expenditure Needs not wants 3) Pay Debt Disposable Income Keep some for unexpected expenses.

Stick To Your Budget

Essential Expenses

food

clothes

housing rent

electricity

gasoline

education fees

health

Non Essential expenditures

What can you cut off or

lower substantially till you

become debt-free?

Restaurants?

Movies?

video games?

Parlors

gifts, snacks, etc?

Stay eligible for loan approvals

MAINTAIN

Good Credit Report

Once a judgment enters your credit report,

Financial credibility

it stays there for 7 to 10 years.

WORK ON

Debt Reduction Plans

Credit Cards issuing banks

Some facts:

Remember that free gift you received after signing up for a credit card?

Competition is intense.

It cost them to find new customers.

They want to keep you!

Are you behind on your

Credit Card Debts?

Convince your bank to

lower your interest

rates.

Reduce or take this back!

Make a Balance Transfer? Get a Debt Consolidation Loan? Know the “Annual Percentage Rate” (APR) Pick one with the lowest APR. 10% rate means you’ll pay $10 per $100 you borrow annually. Compare APR: 10% 18% 20% Check the Annual Percentage Rates (APR). It is a good standard for comparing the percentage costs on different loans given by banks. Are there balance transfer charges?

It’s a process to eliminate your outstanding debts for less than the amount actually owed to the creditors.

Why should creditors accept this payment?

You are a few months behind with your payment.

Creditors need not spend money for collection.

They don’t want to sell your account to collection agencies at a much lesser price.

What about making a debt settlement ? Payment of 40% - 60 % of your original amount

You are at this stage:

You have stopped paying your monthly installments to your creditors for a few months.

You have saved at least 50% of the total amount outstanding.

You have to:

negotiate with your creditors for a settlement.

record the terms and conditions of the agreement taking place between you and your creditors.

maintain accurate information related to your debt account.

learn to write letters with proper information.

Debt Settlement For it to work Objective: Not to be declared a bankrupt!

Taking up another financial obligation? What’s your purchasing power ? Calculate your debt to income ratio: Monthly Debt ÷ Monthly Income 37% to 40%: High debt-to-income ratio. Above 50%: Living on the edge! Assess your financial health first before you spend! Feeling much better? Don’t put yourself through another financial stress.

Remember how you got into this mess . illness? divorce? sudden loss of job? overspending? It t he Joneses’ fault?

The wedding of the year? Let’s go for the best retirement plan for our golden years. A bigger house? We can upgrade when the time is right. Get the latest, again? I am comfortable with what I have. A dream holiday? Not now. We can save for it. Work harder. Get a scholarship. Study overseas? The unexpected. Let’s save for that. Chang your attitude. T he Joneses are as broke as you are.

I need more information. Where can I go?

This is where I discovered the solutions for clearing debts. Heard of debt free community? It’s a place for debt struck people to seek help.

Been there done that! I share my experiences. Read my postings on the forums. Some of my articles may help you. Who are they?

They are Community Members Ask us a FREE question yesdebtfree.org

Join to ask for help… … or share experiences.

Found

Gain some cash to settle your debts:

Post your (sob) story for publication and get rewarded

Be rewarded $500 for posting good videos ($ rated not X).

Win a prize of $1000 for community review in local newspaper.

Start your own blog with DebtCC and make money.

WOW! Get in the Hall of fame.

Get rewarded for sharing.

Become an official DebtCC FAQ Maintainer

You don’t have to sign up to check them out. Could this be a scam?

Learn to

do it yourself

Use its Debt Calculator .

Read their Sample Letters .

Read some articles .

Join their forums .

Comfortable?

Sign up to post

Questions.

Explore and Experience

Think you can do better than that? Appreciate what you read?

Question of the Month How do you control stress at the time when you are trying to get out of debt? Funds from answering “ Question of the Month” Winners will be awarded $50.

Or join as a Debt Samaritan Club volunteer My calling is to rescue the debt struck people from the clutches of debt.