GET OUT OF DEBT: 6 STEPS YOU NEED TO TAKE

The New Year is full of hope and excitement. Many are looking forward to a bright year ahead. This includes goals like having a new car, promotion at work, increase income, better relationships, better house, and probably more travels. The list goes on. 

For me, I have decided that I will look for ways to increase my earning capacity for two reasons: to speed up the process of paying my debts and to celebrate my birthday in May, my first since I can remember! I want to save towards that meaningful event of my life when I turn 60. What A blessing!

I am posting this article by MMarquit entitled "Get Out Of Debt: 6 Steps You Need To Take" (Coupon Shoebox). The thing that really cool about this article is it's simple and easy to do. My wife and I start our year by revisiting our last year's budget and making changes to arrive at our 2012 budget. Part of that process is listing all of our debts as suggested in item no. 3.

I know it will be of great help to you as you do what MMarquit says. Cheers and Happy New year!

One of the most important financial lessons that you can learn is that debt is prison. Indeed, when you are paying interest on your debt, that money is going straight into someone else’s bank account — and you receive nothing in return. Plus, paying that interest makes it harder to pay down the principal and to reduce your debt. Even though it might be difficult to get out of debt, it is doable. Here are the steps you can take to get out of debt.

1. Really Decide That You’re Getting Out Of Debt

The first thing you have to do is decide that you are really committed to getting out of debt. You need to truly want to change the way you do things, and get serious about paying down your debt and getting on the path to financial freedom. Without the commitment to get out of debt, you are likely to give up.

2. Stop Adding To Your Debt

Take a look at your budget, and figure out how you can better live within your means. Before you can effective tackle your debt problems, you need to stop making purchases with debt. Look at your spending, and cut back on the unnecessary items so that you are living within your means.

3. List All Of Your Debt

Next, list all of your debts. List the balances, minimum payments and interest rates. Decide on an order to pay them off. Many people like the “debt snowball” method. You take that lowest balance debt, and concentrate on that first. This method is psychologically rewarding, since you see success faster, and are encouraged to keep going. Others, though, prefer to start with the debt with the highest interest rate, since it will save more money in the long run, since you will get rid of the most expensive debt faster.

4. Decide How Much You Can Put Toward Debt Pay Down

Now that you have prioritized your debt list, it’s time to figure out how much money you can put toward your debt pay down. Honestly evaluate your spending, and look for places to cut back. You should be able to find waste in your spending, and, instead of spending it on frivolities, put it toward paying off your debt. Pay the current minimum on all of your debts, except the one at the top of your list. Put your debt pay down amount toward that debt. The more you can put toward it, the better.

5. Look For Ways To Earn More To Speed Up The Process

If you want to speed up your debt repayment process, you can look for ways to earn more money. Start a side hustle. Get a part-time job. It’s only for a little while. If you can put your debt repayment efforts into overdrive, you can be free that much sooner — and you will reap the benefits.

6. Acknowledge Your Successes

You can stay motivated when you acknowledge your successes and take time to reward yourself. Don’t go big though — you want to stay out of debt. But you can hold a little celebration, or you can retire each debt in a creative way. Buy a small treat, or cook your favorite dinner at home. Be sure to mark each milestone, and get excited about your next step toward success.

Looking forward to 2012, debt-free,

Jimmy

P.S. Last year, I decided to start blogging in my desire to create a new stream of income. However, as I learn how to blog, I found that beyond making money, I can express my passion and help others find answers to their problems and challenges. Today, I am grateful to my mentor, Jomar Hilario, for teaching me how to blog and hopefully to be like him someday. If you are interested in blogging, why don't you join me at Online Mentoring Club.

Photo Credit: http://www.gettyimages.com/detail/photo/files-with-labels-royalty-free-image/92347801

A Doable New Year's Resolution

Maritess and I had a good talk with our eldest daughter over breakfast today. We had a very light discussion of what lies ahead of us this 2012.

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Topics covered many areas including finance. My eldest is a licensed Architect and works at Architecture Network, a well- known architectural firm in the country today. When asked what her goal for this year is, she readily included taking good care of her financial house, making sure it is in order this year.

I love to hear that kind of goal. I am proud of my daughter and I am sure she will succeed in that area of her life.

Like it or not, finances are one of the most talked about issues this 2012. Many are hoping to earn more, save more, invest more and become debt-free in order to gain financial stability.

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I suggested the following goals for my daughter this year:

1. Try to save more of her income, at least 20%.
2. Monitor her spending patterns for a month, to find out where her money goes.
3. Start creating an additional stream of income.

That was simple and short but doable. One of my goals this year include item # 3.

There will be many opportunities for earning more this year. Are you ready to grab them given the chance? I believe, we can do so if we have the financial resources as a result of controlling our spending habits and saving for the future.

Happy New Year and be happy saving, investing and getting out of debt.

To our debt-free life ahead of us,

Jimmy

Budget Busters

I am posting a very good article today from Crown Financial Ministries. This article has lots of practical suggestions designed to enable you to take control of your finances. When we avoid these "budget busters", needless to say, we also effectively cut down on our debts. I hope this will help you just like it helped me. 

Budget Busters 
by Crown Financial Ministries

Budget busters – areas that can result in financial disaster.

(The following percentages are for a 4-member family with an annual gross income of $130,000 or less. Net Spendable Income (NSI) is money available after tithe and taxes.)

Housing (38 percent of NSI)

• Don't buy or rent a house you can’t afford – total housing includes mortgage, taxes, insurance, utilities, phone, and maintenance.
• Don’t finance closing costs or secure a second mortgage for a down payment.

Food (12 percent of NSI)

• Plan and stick to written weekly menus.
• Don’t shop when hungry or hurried. Do shop specials, store labels, and use coupons.

Automobile (15 percent of NSI)

• Buy quality used cars you can afford, and don’t trade in before car’s usefulness is over.
• Auto price, maintenance, gas, tags, taxes, and insurance are all part of cost.
• Consider dropping collision insurance on cars more than four years old.

Debt (not housing or auto – 5 percent of NSI)

• Establish a payment schedule to pay all creditors regularly, and get rid of credit cards that you can’t pay in full each month.
• Sacrifice wants and desires – buy with cash until debts are current.

Insurance (5 percent of NSI – if your employer provides medical insurance)

• Find a well-informed, trusted insurance agent to get the best possible provision for the money.
• If you have no medical coverage through employment, consider major medical insurance – it can covers up to 80 percent of medical expenses due to catastrophic illness or injury.

Recreation/Entertainment (5 percent of NSI)

• Recreation-oriented Americans, who are in debt, shouldn’t borrow to entertain themselves.
• Plan vacations during off seasons, select local vacation destinations, consider camping.

Clothing (5 percent of NSI)

• Save money and buy without using credit.
• Purchase off season if possible, and select home washable fabrics and outfits that can be used in multiple combinations.

Medical and Dental (5 percent of NSI)

• Prevention is cheaper than treatment.
• Teach children to eat the right foods and clean their teeth properly. Good diet, rest, and exercise will most likely result in better health.
• Ask doctors and dentists in advance about costs, shop for prescriptions, and ask for generic drugs.

Savings (5 percent of NSI)

• Without savings, the use of credit and debt becomes a way of life.
• Use payroll deduction for savings. If it’s not available, your bank can automatically withdraw from checking account to savings.

Remember budgets don’t operate on auto-pilot, they require effort and family understanding. If you’re determined to achieve and maintain a debt-free lifestyle, then living on a budget is essential. Don’t bust your budget.

It is wise to pay attention to these practical and useful suggestions. It takes time and effort to do these but when we follow them, they become part of our lives that will cause us to be in control of our finances.

To your debt-free life,

Jimmy

United in one purpose: Debt-free life

I am happy to see many bloggers with a passion to help us to be free from debt. I admire them and have in fact met some of them through my twitter account: debtfree_life. Many of them were very successful in getting out of debt themselves. Thanks to these wonderful people, who made it their purpose to help many who are wallowing in debt. 

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I would like to feature some of them here. I believe there is power in unity. United in one vision, to live a debt-free life. I promise you are in for a big treat when you visit their blogs and websites. I have benefited a lot and continue to learn whenever I read their articles, tips and practical helps.  




To your debt-free life,
Jimmy


P.S. Below are some articles of these men and women that I follow on twitter. I hope you will enjoy reading their inspiring articles.


Articles
Budgeting by Dave Ramsey
The Debt Snow Ball Calculator

P.S.S. I also updated my blog to include my twitter friends who have the passion to help you get out of debt.

You Spend more when You're Emotionally Empty

Manila has a lot of Shopping Malls, big malls. The biggest so far is SM's Mall of Asia located in Pasay City. In Quezon City, where I live, we have many big and newer malls: the expanded SM City North, the new Trinoma Mall, and the Gateway Mall at the Araneta Center in Cubao, Quezon City (shown below) among others.

People I know from the US and even in Canada envy our malls. Last week, I was in Guam on a business trip. Their biggest mall is The Micronesia Mall, owned by our very own Lucio Tan. They say that half of Guam is now owned by Mr. Tan. But you know what? Their Micronesia Mall is nothing compared to our malls.

But here's the thing. If you go to the malls, most likely you will spend at least a hundred pesos, on anything your eyes will see. The malls are designed to attract you and your wallet! Every floor area were conceived and designed to catch your attention for you to buy.

My piece of advise: stay away from the mall, specially if you are emotionally empty. Experience tells us that people who are emotionally void or troubled, tends to spend more to fill in that emptiness. I have a friend who goes out to malls or MacDonalds to eat every time he is stressed.

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It is easy to swipe the credit card when you want to buy something you actually don't need, specially if you have no cash, in order to fill in a void in your life.

Just a thought while I was answering an email today.

Hope it helps to make us debt-free,

Jimmy

HOW TO GET OUT OF CREDIT CARD DEBT

Did you know there is such a thing as the Credit Card Association of the Philippines (CCAP)? I found out about it last May 26 when Maritess and I were having our breakfast at a fastfood chain, they gave us a free newspaper. As I scanned the paper, I saw CCAP’s report on its annual conference that day at Sofitel Philippines Plaza Manila.

The amazing thing that CCAP said was “with a budget, some dedication, and a lot of discipline, your credit card debts can be wiped out.” It looks like they want you out of debt. Uhmmm.

Here are some recommendations they have proposed to wipe out your credit card debts:

1.       First thing, find out exactly how much credit card debt you can afford to pay off.

2.       Make a budget so you can know how much to pay whom.

3.       It is considered wise to put aside thirty (30%) percent of your monthly income as savings. What is left, after paying off your monthly fixed expenses, is how much you can dedicate to eradicating your debt.

4.       There are two preferred methods for paying off your cards: highest interest rate first, or lowest balance first.

5.       Paying off your credit card with highest interest rate will save you money in the long run, especially if the highest rate card happens to be the one with the highest balance.

6.       Paying the lowest balance first is much easier, and the debt is taken care of much quicker. Personally, I prefer this method as it helps you see the evidence that you are actually zeroing out your debt and gives you motivation to move to the next card and the next, until everything has been settled.

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At the end of the article, CCAP admits that it will take some time to get completely debt-free- but once you are, there is nothing stopping you from investing and making your money work for you instead of the other way around.

This week, I am happy to eradicate one of my credit card debts. As I paid the balance, it became clear to me how much money I lost paying off the finance charges and late payment charges this credit card was charging me month after month.

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One lesson I learned and I want to pass on to you: always pay your card on time, and you must always pay your full balance in order to escape the interest that will be levied on you!

To your debt-free life,

Jimmy

I MET JOMAR HILARIO

It has been my desire to meet my mentor personally since I became a student of the Online Mentoring Club. Finally, last week, April 30, at the Think Rich Quick (TRQ) Seminar of Trace Trajano, I met my mentor, Jomar Hilario! In just the span of five minutes of talking with him, I learned a lot. The funny thing was when he asked me who I was. He had a hard time recalling my name. But when I mentioned to him about my BLOG, Debt Free Life! Philippines, he immediately remembered. To me, it means only one thing! He reads and studies my blogs!

Thank you, Jomar. In my amazement, I forgot one thing though... to have a photo op with him. Well, maybe next time. I’ll have that privilege when I join the Breakthrough Seminar.

Every successful person has a MENTOR. Manny Pacquiao has Freddie Roach. He is a billionaire. I have Jomar Hilario, and I am a millionaire!

To your debt-free life,

Jimmy

P.S. Internet Marketing and blogging will earn you passive income. One sure way you can erase your debt. That’s one reason why I enrolled in Jomar Hilario’s Online Mentoring Club. More than the technical information and techniques that I have learned, my mentor opened my eyes to new opportunities and possibilities of MAKING MONEY ONLINE!

You too can.! Be mentored and be the next Online Internet Marketing guru. 

Get Ready for Abundance!

Do you want to be free from debt and financial stagnation? Here's one seminar that will change your life. They say that if you want to be successful, learn from a successful person. I believe that we do not need to go through the mistakes we will commit if we do things our own way. We can avoid a lot of mistakes and hard aches if we follow and learn from those who have gone before us. 


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One successful person who have been there, done that is no other than Bo Sanchez. He's been in debt and even lost a lot of money on bad business deals. But that didn't stop him from being one of the successful entrepreneurs of our time. Today, he conducts the famous HOW TO BE TRULY RICH SEMINAR. This seminar will free you from financial stagnation and rescue you from years of financial misery.Do you know that 90% of your money problems are mind problems? Through Bo Sanchez’ transformational How To Be Truly Rich Seminar, you’ll learn how to solve your money problems by first solving your mind problems. Bo will take you through the journey towards what you deeply desire: True financial and spiritual freedom. Yes, it’s possible to get out of debt and earn passive income. It’s possible to become wealthy so you could start sharing your wealth to others.

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So here it is, you can be one of those who wants to be financially free. I’m inviting you to join Bo Sanchez in his How To Be Truly Rich Seminar. It will change your financial thinking—which will change your financial habits—thereby changing your financial life. Yes, the Seminar will bless you. 


To your debt free life,
Jimmy


P.S. Join now by signing up. The seminar fee has been marked down from P8,000 to ONLY P497 per person (first come first serve). The date is May  14,  (Sat) at 8:30 am - 12 noon.

#1 Reason Why I blog

I am a Pastor and a businessman. After working for Fujitsu Philippines for 17 years, I retired in 2000 and went into the ministry.  In 2008, I went back to the marketplace to manage a recruitment agency, UNO Overseas Placement, Inc. We send Filipino skilled workers to Japan under the Technical Intern Training System of the Japan International Training Cooperation Organization (JITCO). Part of the training we give to our Interns is the “Work Ethics and Values Seminar”.

The Work Ethics and Values Seminar was designed to help our Filipino Interns cope with life in Japan and equip them to face their future with both emotional and spiritual substance. The most important aspect of this 3-day seminar is changing the way these interns think. Most of them come from the province and urban areas. As such, ingrained in them is the poverty-mentality.

Seeing them wallow in poverty and in debt even before they leave for Japan, I made it my goal to help them be set free from this evil bondage. To break a bad habit of living in debt is not easy. The initial step towards freedom is to teach them to change the way they think and then increase their literacy about finances. So far, we have made progress. We believe money is not the answer to living a debt-free life. When they learn to manage their finances properly as good stewards of what God has given them and then take on an “investor mentality” as opposed to a “consumer mentality”, the interns begins to see that they can prosper!

I love helping our interns or OFWs change the way they think!

Last week, one of our interns came home after a 3-year contract in Japan. He is now a millionaire! What is his secret? He followed our advise by diligently saving 30,000 Yen a month! Now, his plan is to invest part of it in a food franchise.  Indeed, there is hope for our OFWs.

Last year, I became a member of Truly Rich Club. I am now incorporating the principles that I’ve learned and tested from Truly Rich Club to our interns. It is easy for them to understand financial literacy when they see how it works!

To your debt-free life,

Jimmy

P.S. I became more passionate to see our OFWs set free from poverty-mentality. Late last year, I decided to do online marketing and took Bo’s recommendation to enroll in Jomar Hilario’s Online Mentoring Club. I am now in my 4^th month as a student of Jomar Hilario. I am making progress and one day, I will be sharing with them what I’ve learned.

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This blog is part of our lesson. Honestly, it was the monetary returns that motivated me to do blogging. Today, I found the real reason for my blogging: to help my “Kababayans” specially our interns and OFWs, be set free from wallowing in debt.  If I can show them how to be free through my blogs, I would have done a good job. That’s why, now I love blogging!  

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     Tweeter says a lot about Debt-Free helps. “Help you lead a Debt-free Existence. How to eliminate your credit. Free Debt help. Become Debt free. Words that expresses ones desire to be free from wallowing in debt and start living a debt-free life!

   

5 Simple Ways to Erase Debt

I used to owe a lot of people and credit card companies. I was deep and wallowing in debt. I had a good job, driving my own car yet deep in debt. I didn’t know how to manage my money. I was loose.

Then one day, I received a demand letter from a law office, threatening me to pay or else? Being a young, I didn’t know how to handle the threat. I felt like it was a shock treatment. I learned my lesson. I decided to do something about my debt. I talked to the credit card company manager and asked for practical way to pay my debt. Yes, slowly but surely I was paying and getting out of debt.

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I learned to prioritize my expenses. It was like starting all over again. Somebody taught me how to budget. It was simple but effective. I used a simple system called the “envelope” system. Each time I received my pay, I put money on each envelope, starting with “debt payments” envelope then the rest. My life changed. I cut down on self-indulgent activities and stuck to my budget.

When I got married, the first thing we did was to make a budget. My wife, my lovely wife, Maritess and I agreed to have a budget and stuck with it. I got out of my credit card debt. So, it was a good start!

Today, we still work on a budget. We do this at the start of the year. We review it at the middle of the year and assess it at the end of the year.

Here are 5 simple ways to erase your debt:

1.        Decide you want to get out of debt.

2.        Do something about it. Contact all creditors, honestly relate your problems, and arrange an equitable repayment plan. Creditors love it when you talk to them sincerely. And you know what? They will agree with your repayment plan.

3.        Destroy all credit cards. Buy on a cash basis, and sacrifice your wants and desires until you are current.

4.        Make a budget. Establish a payment schedule and allocate at least 5% of your income for debt payments.

5.       Stick with your budget. If the expense is not in the budget, do not proceed. Be disciplined.

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Yes, discipline is an integral part of this debt-free process.  My coach in “Vertical Leap”, Al Hollingsworth, defined Discipline as “delayed gratification”.

Why stay in bondage to your debt? You can live a debt-free life now. Just make a decision!

To your debt-free life,

Jimmy Ching

P.S. This year, instead of focusing on not getting into debt, I decided to increase my income by creating additional income stream. I have joined Jomar Hilario’s “The O.nline Mentoring Club”. He’s helping me make money online.. right now! Jomar is one of the Philippines' foremost online business guru. He has helped a lot of people become internet entrepreneurs. What I am learning from Jomar, I wish I did when I was younger. But, the good thing is you can always start anytime you decide to do something about your situation. Today I am being mentored by one of the best in online business guru. How about you?

MOUNTING CREDIT CARD DEBT

The first time I applied for a credit card, I went through a rigid process called “credit investigation”. During those days, the credit card company will make sure that you are capable of paying them. So, they ask you a lot of things regarding your income, your billing statements, the house you live in and many more. And do you know what? The process takes time, so you have to wait for their approval. Credit cards in those days were precious commodities. When approved, you feel like you’ve won in a lottery.

Today, with so much competition, the credit card companies are giving away the credit cards. They just mail it to you and all you have to do is receive it, sign it and you’re in. Others set up a booth in malls and offer their cards to anyone who especially if you’re an existing card user. So easy!

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So, here you are with your new credit card and you start using it. The problem comes when the bill starts arriving every month. Today, many use the card as if that is their money. They forget that credit cards are used for convenience purposes. It means you have money but instead of paying cash you use your card so you won’t have to carry cash anymore. You pay on time when the bills come.

Do you know that the credit card companies don’t like it when you pay on time? They love it when you default on your payments because they earn from the interest charges and late payment penalties. They also have the “minimum amount due”, which means you can pay the "suggested" amount and worry about the principal later. So you end up with mounting debts! And here’s the thing, the interest is compounded monthly!

If you’re in this rut, let me tell you there’s a solution to your problem.

I came across Sha Nacino, through Trace Trajano. I’ve joined his Buy Your First real Estate Deal club. Trace co-authored a book with Sha that will help you get out of debt. Sha used to be in debt from using her credit card. The good thing was she saw the problem and she made a decision to do something about it, thus the book.

Here’s the nice thing about it. They are giving you a FREE chapter on how to pay-off our debts in one year or less. Wow, isn’t that good news?

To your debt-free life,
Jimmy Ching

P.S.What are you waiting for? Its time to do something about your debt. Click on this link NOW and change your life to a DEBT-FREE LIFE!

Eliminating Debt

Face the fear. Attack the debt. Be free.

Is debt overwhelming you,
or are you overwhelming it?

If you think about it, the cover of this package could illustrate both scenarios – a life vulnerable to a mounting flood of debt, or a life rising above it toward a stronger financial position. Which best describes your current situation?

There’s no denying that debt takes a toll on us financially, emotionally, relationally, and spiritually. That’s why this study is so crucial! In less that two hours, the Eliminating Debt video study will help you create a plan to attack your debt and be free from the dangers of debt dependence.

Main topics covered:

• Five reasons why people dive too deep into debt
• Steady, practical ways to eliminating debt
• How to address special issues like credit scores, dealing with creditors, and bankruptcy

I believe we can really benefit from this study material from the Crown Ministries. They are reliable. They are now here in the Philippines doing studies and mentoring through the ministry of Christ's Commission Fellowship. It is worth looking into if you are serious in eliminating debt in your life. Live a debt-free life!

Article source:http://www.crown.org/debtplan/Main.aspx?aid=SCHOM