Recognizing the habits that lead you into debt are the key to finding your way out or avoiding debt pitfalls. Paying off debt is hard and cleaning up your finances after a bankruptcy is an ordeal. Try these five helpful preventative measures to sve yourself a lot of stress and money later on down the road.

1. Only spend what you make. This sounds simple. It can be hard. Figure out how much you make a month and don’t spend any more than that.

2. Don’t spent money you don’t have. Don’t grab credit cards or loans tro pay for things you can’t afford.

3. Use cash. Don’t pull out the plastic.

4. Don’t go into debt to pay off more debt. Using credit cards or loans to pay off other cards or loans just shuffles your debt around. Transaction fees and interest will add up.

5. Don’t use credit to make regular purchases, like groceries, gas, clothes or entertainment.

These are just a few simple ways to change your mindset and focus on avoiding debt. Elite Debt Management is here to help in case you do have debt and need help negotiating it down to a management amount. We want to help educate you so that you can take control of your finances and live the life you want to lead.

If you’re late with your car payments or don’t have adequate auto insurance, your vehicle could be taken away from you, which can be devestating if you rely on your car to get you to work, school, the grocery store, etc.

Here’s what you need to do:

1. Contact the creditor right away. Most creditors will work with you because they’d rather get paid at some point then not get paid at all. You may be able to renegotiate your payment schedule or change your original contract.

2. Just in case, get all your personal belongings out of the car, so if it is repossessed, you won’t lose all your stuff as well.

3. If it ends up being repossessed, your creditor may keep it as compensation for your debt or resell it.

4. You may be able to buy back the car if you pay the full amount due in addition to the repo fees.

5. Check your state consumer protection agency. Some states have laws to reclaim your cay by paying the amount you are behind on your loan, plus your creditor’s repo expenses.

A repossession is very damaging to your credit report and can remain on it for up to seven years. Elite Debt Management can help you negotiate a final payment, and we can refer you to a trusted credit repair company to make sure it’s reporting correctly on your credit report. You’re not alone, and we can help you.

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We’re a little different from most debt settlement companies, and this is why:

1. We offer a flat rare service model. Most debt settlement companies charge a large percentage of your debt as their fee (15% to 20%) along with a monthly service fee on top of that. This makes their fees a priority over your debt. They get their fees first. This results in a high drop out rate of clients. We don’t do that. We offer a flat rate monthly service plan that makes our program affordable for everyone. We want you in and out of the program as fast as you can because we honestly care about you and getting results that will improve your life.

2. We create relationships with creditors and collection agencies. We don’t argue or make things a battle of wills. We build bridges for our clients and the results speak for themselves. We have contacts in the vast majority of credit card companies and collection companies and this gives us a huge advantage over the companies that battle with the creditors.

3.We give you all the answers before your service starts. Having you informed and educated on the process is important in making the right choice. You’re an intelligent consumer with important questions that should be answered before you enroll. Beware of anyone who won’t address your direct questions or says they will answer them later.

Elite Debt Management is determined to be the industry leader in bringing innovating, successful approaches and programs to debt settlement clients.

It’s a good idea to have a yearly checkup to evaluate your financial health. Financial planners are available to to answer your questions and assess your good and bad debts, as well as your savings and ability to respond to a financial emergency.

The following questions are similar to ones they would ask to help you diagnose your financial situation:

1. How are your ratios? Primarily this refers to your debt-to-income ratio, your savings rate and emergency funds.

2. Are you earning more than you’re spending? Use Quicken or Mint.com to keep track of what you actually spend compared to your income.

3. Is your net worth growing? This is the best way to measure your financial health. Subtract what you owe from what you won. Mint.com has helpful tools & calculators to guide you through this process.

4. Have you had big life changes in the last year or so? Marriage, having a baby or retiring all require big financial decisions and changes.

5. Are you adequately insured? Evaluate the cost of your homeowners’, renters’, health, disability, life & auto insurance yearly.

6. Do you have estate planning in place? This is having a will or trust that names beneficiaries and guardians and trustees, etc., in case somewhere were to happen to you.

7. Are you sleeping well? Do you need to rebalance your portfolio?

8. Are you happy? Are you working towards achievable goals and finding the best way to finance what you want out of life?

These are all important questions to help you ascertain your position and finances on a regular basis. It’s important is know where you are now and where you’re headed. Elite Debt Management can not only help you settle and pay off debt but also give you advice on how to achieve the best possible financial health for your goals in life.

Getting out of debt isn’t easy. There’s no quick fix, and just because you do get out of debt doesn’t mean that you can’t end up right back in it again. Here are four steps to resolving current debt and preventing future debt:

1. Manage your current debt – Design a budget and payment plan to pay off your debt within a certain period of time. Of course, some people have way too much debt to tackle, so it helps to use one of the following most common debt management strategies.

Debt Consolidation – obtaining a single new loan to pay off existing debts.

Credit Counseling – an agency that provides debt management and consoledation services.

Debt Settlement – negotiating directly with your creditors to pay them off.

2. Avoid falling back into debt – Prevent future debt by following a monthly budget to keep track of your spending and income. That way you won’t spend more than you earn.

3. Repair your credit – Improve your credit scores. Lenders look at your credit report to see if they should lend you money and at what rate. You can raise your credit score by using a credit repair company such as Total Score Repair or United Credit Source.

4. Build your savings – Save money and invest some of it each month. Eventually that safetly cushion will be enough to cover unforeseen expenses or help with major life expenses such as your children’s college education or your own retirement.

Getting out of debt isn’t quick or easy, but it’s worth it. Sit down, figure out your finances, and take it one step at a time. It’s possible and there are people out there to help you. You’re not alone, and companies like Elite Debt Management are there to hold your hand through the process of becoming debt free and educate you so that it won’t happen again.

When tackling your debt, it’s hard to maintain the patience and discipline to continue paying creditors off.

You might feel the need to pay off the largest debt first.

Or the one with the highest interest rate.

Our suggestion, if you aren’t in EDM’s debt management program for us to help you, is to work on paying off the smallest debt first.

Why?

Because you have to take baby steps.

And the you need some “quick wins” to get pumped about your debt reduction.

It helps to see some results right away, to ramp up your behavior and keep you motivated!

Now, this doesn’t mean ignore your other debt. Keep making payments on those, but keep them minimal while you focus on paying off the smallest debts first.

Go ahead and make a list of your debts, then prioritize them by which are the smallest to largest.

It’s hard to be broke and feel like you have a mountain of debt pulling you down.

Take control of your financial health a little bit at a time. It’s possible to get out from under your creditors and be debt-free. We’re here to help you, so you don’t have to go at it alone.

Need Help Living Paycheck to Paycheck?

Do you find youself constantly running out of money and having to borrow or get cash advances or loans? Don’t dispair. According to some surveys, over 50% of workers say they live paycheck to paycheck. So you’re not alone.

Here’s our advice on how to get control of the problem.

1. Create a budget. Make a list of all your bills and debts. And then figure in your income. Then you’ll see how much you have to spend on what.

2. Track your spending. This is part of making a budget. For a whole week save your receipts and catalog exactly what you’re spending on what items and services, and then catagorize everything.

3. Cut expenses where you can. You might have to make some lifestyle changes, such as less eating out or cutting your cable package down to the minimum channels.

4. Increase your income. Take on a part time job to bring in some extra money. Take on a hobby to help out. Change your tax withholding from your paycheck or try to get a raise.

5. Change your attitude about money. Make smart choices. Think about the long run and don’t give into impulses. Keep your credit card debt to a minimum.

If you have debt that’s too large to get a handle on, Elite Debt Management can help you settle them for less than the original amount.

It’s worth it to get control of your finances. You’ll find youself happier and less stressed. And making better decisions for the future. You can do it, and if you need help, we’re here!!

When times are tight, we have to cut back on extravagences…but not cut back so much that that you can’t enjoy something. Figure out what things you spend the most money on for pleasure, and then look for ways you can spend a little less enjoing the same thing.

Books are a big weakness of mine. I could spend a fortune in the bookstore easily. But during hard times, I’ve made friends with Half-Price Bookstore and the local public library. That way I can still enjoy reading but as lesser price.

Movies in the theater are a huge money-sucker. Two tickets and popcorn adds up fast. So, instead, rent movies and invite friends over. Pop your own popcorn, buy your own candy, and host a movie night at home for much less.

Eating out is another place to spend lots of money, but if you start cooking at home, you can use leftovers for lunch the next day. Cooking together with a friend or a loved one or the whole family can be an adventure in itself that is priceless.

Shopping. It’s hard to replace shopping. You need to find less expensive ways to make yourself feel better after a hard day. A walk in your favorite park might work, exercise releases endorphins that make you feel better. A bubble bath by candlelight, yoga in the backyard, something along those lines.

Make a budget, figure out where you spend the most money and cut it down just a little bit. Make reasonable changes. Moderation is the key. Now’s the time to conserve and put your money to the important stuff, like your bills. Cut back without sacrificing too much.

If you have too much debt weighing you down, contact Elite Debt Management to help you bear that burden and find relief. We’re here to help you figure out what’s best for you.

Jan 5th 2010 by Martha C. White

For a while, it looked as if Americans were getting a better grip on their out-of-control credit card habits. Unfortunately, new data shows that we seem to be falling off the wagon once again.

According to this article in the Wall Street Journal, the rate of credit card charge-offs rose in November from 10% to 10.6% after declining for the past two months, and delinquencies continued a four-month rise, hitting 6.2% in November. Delinquencies are payments that are 30 days or more past due. Charge-offs are balances that the card company writes off as a loss and gives up on (generally, they sell the debt for pennies on the dollar to a third-party debt collector).

Moody’s predicts that the charge-off rate will continue rising and eventually peak in the middle of this year. In other words, it’s going to get worse before it gets better.

Even more worrisome is data that shows Americans are paying down less of their collective principal than they were just recently. The payment rate fell nearly a full percentage point in November to 16.42%.

This is bad news for delinquent cardholders individually; it’s also bad for the economy as a whole. While experts have recently mentioned some encouraging signs like lower unemployment claim filings and small growth in the manufacturing sector, this recovery still has a long way to go.

High rates of unpaid credit card debt affect both consumer spending ability and consumer confidence. Both of these, in turn, directly affect the unemployment rate, since companies won’t hire people to make goods or staff stores if they perceive that spending is under siege.

If this sounds like a vicious cycle, it is. While we here at Walletpop hear on a regular basis from readers who have sworn off credit card balances and stick to buying only what they can pay for at the time, there are obviously many Americans still stuck in a downward spiral of debt. Until enough people can get out from under those crushing bills, this debt is going to drag on the nation’s economic recovery.

Elite Debt Management

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