The Debt Be Gone Zone

Saved ten cents per gallon of gas and ATM fees ...

2007-06-13T07:23:00.000-07:00

Hi all, just a quick post. I want to tell you how I saved 10 cents per gallon of gas when I filled up and at the same time I was able to withdraw cash without paying ATM fees.

First, my local grocery store has recently opened up a gas station in their parking lot. Right now they are offering ten cents off per gallon of gas with their shopping card if I purchase $50 or more of groceries. I was out and about, I needed some gas and I also needed some cash. I did not want to pay ATM fees for using another banks ATM. I really don't like the idea of paying to get my own money.

So I had a light bulb moment. I went into the grocery store and killed three birds with one stone... I bought one item that I needed that was on sale, I used my debit card and I got the cash back that I need free. (No ATM fees) and I got $50 cash back so my bill came up to more than $50. Guess what, I got 10 cents per gallon at their gas station which is already about 3 cents cheaper than any of the other gas station.

I love it when a plan comes together....

Tell me what you think... more ideas to come....

Yours truly,

The debt free lady

Bankruptcy hits an all time high---

2006-01-20T13:07:00.000-08:00

Bankruptcy Filings Hit Record 2M in 2005
By Associated Press Posted January 11 2006, 9:21 AM EST

Fix your credit and get debt free in 2006!!!
Go to:

WASHINGTON -- The rush of indebted consumers to file bankruptcy before a tough new law took effect pushed personal filings for 2005 to their highest annual level on record -- more than 2 million, according to new data. Significant increases in consumer bankruptcy filings occurred in every region, according to the data released Wednesday by Lundquist Consulting Inc., a financial research firm based in Burlingame, Calif. It tallied 2,043,535 new filings last year, up 31.6 percent from 1,552,967 in 2004 -- meaning that one in every 53 households filed bankruptcy petitions, according to the company. The new law, bringing the most sweeping overhaul of the U.S. Bankruptcy Code in a generation and making it harder to erase debts in bankruptcy, took effect on Oct. 17. In anticipation, personal bankruptcy filings jumped in September to the highest on record. They averaged more than 9,000 a day, up roughly 50 percent from 2004's average daily volume, during the first two weeks of September. By contrast, Lundquist analysts noted a sharp drop in the number of filings since the Oct. 17 deadline. Within the smaller number overall, a greater proportion were made under Chapter 13 versus Chapter 7 of the code. Nearly 60 percent of filings made after Oct. 17 came under Chapter 13, compared with the usual 30 percent under the old regime, Lundquist said. The new law bars those with above-average income from Chapter 7 -- where debts can be wiped out entirely -- except under special circumstances. Those deemed by a new "means test" to have at least $100 a month left over after paying certain debts and expenses now have to file instead a 5-year repayment plan under the more restrictive Chapter 13. In November, for example, Chapter 7 bankruptcy filings plunged to 17,286 from 81,952 in November 2004, according to Lundquist. Chapter 13 filings were 9,201, compared with 34,865 a year earlier. Total filings from Oct. 18 through Dec. 31 were around 38,000, representing fewer than 2 percent of all filings for the year, the firm said. Filings in Ohio jumped 51.7 percent in 2005 to 135,142, making it the second-highest state in volume, the data showed. California was the highest, with 164,856, a 35.9 percent increase.

Digging out from the credit and debt rat race....

2005-02-25T09:09:00.000-08:00

Well another week has come and gone. How much closer are you to getting out of debt and improving your credit....

Tips on getting out of debt:

1.) Add another stream of income. I do not recommend a second job, however, I do recommend adding a second stream of income. Turn you favorite hobby into a part time business. Research the internet, the public library and the local bookstores for ideas- you will be surprised with what you come up with.

2.) Learn to spend less of the income-
A.) Write down all purchases in your checkbook. Whether you pay by check or cash or credit card. This discipline will help you to think while spending and it will help you to see where your money is going.
B.) Put into place a 24 hour cooling off period for major purchases-say purchases $50 or more.
This will help us to break the cycle of immediate gratification. We will often find that we really don't need or want that sale item anyway.

3.) Get in the habit of saving regularly-
Open an account just for saving. Don't get checks or a debit card for this account. Have the money taken out through direct deposit everytime you get paid. This is automatic saving. I started some years ago with $25 per check and I have since uped the amount. This will give you a feeling of success ---sweet success!!!!!

Yours truly,
the debt free lady

You are not alone!

2005-02-22T11:23:00.000-08:00

Why young Americans are drowning in debt

Saddled with college loans and credit card debts at a time when the job market is tight, they may be the most indebted generation of young Americans ever. By Christian Science Monitor

Two weeks ago, when Beth O'Connell ordered several books from Amazon.com, she received a distressing surprise: She had hit the limit on her credit card. Sorry, no books. "This is my first maxing out," explains O'Connell, a publicist in Watertown, Mass., who graduated from Boston University three years ago. "I think I'm making decent money, but it's just not enough with all the bills I pay. It's not like I'm going out shopping and doing crazy things. I'm just trying to get by."Trying to get by.

Those four little words echo plaintively around the country as young adults struggle to get established and stay afloat. Saddled with record-high college loans and credit card debts at a time when wages are stagnant and the job market is tight, they may be the most indebted generation of young Americans ever.Higher tuition and housing costs"These young adults are doing everything society tells them to do," says Tamara Draut, coauthor of a new study, "Generation Broke: The Growth of Debt Among Young Americans," published by Demos, a public-policy group in New York. "They're going to college, taking on tremendous student-loan debt, and working longer hours than ever before while in college. When they get in the real world, they can't get ahead because of the debt they went into to get the degree to get the good job."

Two trends are fueling the rise in debt: dramatic increases in college costs and the aggressive marketing of credit cards to college students."This is the first generation to shoulder the costs of college primarily through interest-bearing loans rather than federal grants that don't have to be repaid," Draut says.

During the 1990s, college costs soared by an average of 38%. By the end of that decade, almost two-thirds of students had borrowed money. The average graduate in 2002 owed $18,900 in student loans.To compound the challenge, rents and housing prices have increased faster than inflation during the past decade. Young adults are more likely to hold temporary positions and jobs that don't offer healthcare benefits.O'Connell owes $20,000 in student loans and about $6,000 on credit cards. She must pay $175 in student loans every month for 20 years. "I have 17 years left," she says. She and a friend split the $900 rent for an apartment 20 miles north of Boston. Add to that a $250 monthly car payment, $200 a month for car insurance, and the cost of food, gas and cable TV."It's very, very overwhelming at times," O'Connell says. "It's a never-ending cycle. I'm literally living paycheck to paycheck."

First day on campus, first credit cardMany indebted young adults trace the beginning of their slippery economic slope to the first day of college. When they registered for classes, credit card companies gave free T-shirts to applicants. Enticing offers -- "0% interest!" -- turned out to be no interest for the first month only."I signed right up," says Brandi Dobbins of Washington, D.C. "It gets a lot of people off on the wrong foot. Interest rates are about 21%. You start racking up interest, and pretty soon the interest is as bad as the bill is."

Although Dobbins remained debt-free in college, her $5,000 savings melted away as she established an apartment and bought a professional wardrobe for her job with a nonprofit group. Now, she moonlights three nights a week in a restaurant to pay off debts.Unemployment also adds to the debts of Generation Broke. When Sarah Thurston graduated from college in 2000, she had $20,000 in student loans. After starting a job with an Internet company in New York that paid "an exorbitant amount of money," she assumed she would pay off her loans quickly. Six months later, she was laid off. After four months of unemployment, she took a job with another Internet company. Seven months later, she was laid off again."My unemployment check covered my rent, but I had to put groceries and the daily necessities on my credit card," says Thurston, who works for a publishing firm in North Adams, Mass.

Today she has $10,000 in credit-card debt and $13,000 in student loans. To speed the repayment, she works as a waitress on weekends. Last month she reluctantly accepted a loan from her parents to pay off her credit card. That saves $100 a month in interest."Everyone I know has parents helping them out in some way, because it's impossible otherwise," O'Connell says.But such loans are taking a toll on parents, say Draut. "(Parents) need to ramp up their retirement savings and are still helping to support adult children," she says.No sense of frugalityWhile young people incur considerable debt just to pay for basics, they also get into the hole because of impulse spending."I grew up during the Reagan boom and the Clinton boom," Dobbins says. "My generation, we definitely missed the frugal genes. My mom could go shopping for a family of four on $75 a week with her coupons. I don't think I've ever clipped a coupon. It's just not in me."Although debt is much on her mind, she and her friends, like many in their generation, maintain an ambivalent attitude toward it. "A lot of times we talk about it, but then we say, 'Where are we going to dinner tonight?'"Her boyfriend, who is in his late 20s, has debts approaching $40,000. At least a quarter of his paycheck goes to pay off debts, Dobbins says. That's typical. The average indebted adult between 25 and 34 spends nearly 25 cents of every dollar earned on debt payments, according to the Demos report.For Christie Hadley and her boyfriend, indebtedness means delaying marriage. Hadley, a publicist in Cincinnati who incurred debt during an internship, expects to have all her bills paid in two years. But her boyfriend owes $40,000 in student loans. "He doesn't feel financially ready for marriage until he has all of his credit cards paid off and has a down payment for a house," she says.Reality check on debtBeginning Dec. 1, three credit reporting agencies -- TransUnion, Experian and Equifax -- will offer consumers a free credit report annually. Credit experts recommend that young adults, in particular, get copies of all three. (Read more here about free credit reports.)"Once they see what their credit reports are like, they need to get a reality check on what they owe," says Deborah McNaughton, president of Professional Credit Counselors. She suggests listing all credit card accounts with balances, payments and interest rates. Then formulate a budget to pay it off.Americans between 25 and 34 have the second-highest rate of bankruptcy, after those in the 35-to-44 age group. Yet McNaughton cautions against bankruptcy, unless all other efforts have failed. She recommends negotiating a lower interest rate with creditors or contacting a good credit-counseling agency. "Only if people see that they're falling more and more behind and aren't able to follow these programs would bankruptcy be an option," she says.Although bankruptcy stays on a credit report for 10 years, it's possible to reestablish credit with secure credit cards with high interest rates. But such debt can be perilous, McNaughton cautions. "If you have a $2,000 balance and you only make the minimum payment, with no new charges, it will take 16-1/2 years to pay off. That adds up to more than $2,500 in interest fees."For Jason Roth, who racked up large debts while working his way through college, financial reality hit home when he couldn't get $1,000 in financing to buy an engagement ring. "That moment turned things around," he says, explaining that he mapped out an aggressive repayment plan by living frugally.Today he owes nothing on credit cards and has whittled down his student loan to $9,000. Debt collectors no longer call. Roth and his wife recently moved from Las Vegas to Phoenix to be able to afford a house. He only wishes he could have learned his lesson earlier."Every high school student in America should have to take some kind of financial-strategy class to learn about everything from banking, credit cards, savings, loans and protection from identity theft," he says. "If I had had that type of class, I wouldn't have gotten into such a credit mess."

Your Credit Rights: New Law Promotes Access to Free Credit Reports..

2005-01-08T11:54:00.000-08:00

Breaking news:

Soon you'll be able to get your credit report for free.

A recent amendment to the federal Fair Credit Reporting Act (FCRA) requires each of the nationwide consumer reporting companies to provide you with a free copy of your credit report, at your request, once every 12 months, from www.annualcreditreport.com. The Federal Trade Commission (FTC), the nation's consumer protection agency, has prepared a brochure, Your Access to Free Credit Reports, explaining your rights and how to order a free annual credit report.A credit report contains information on where you live, how you pay your bills, and whether you've been sued, arrested, or filed for bankruptcy.

Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home.Consumers in Western states will first be able to order their credit reports under the federal law beginning December 1, 2004.How do I know when I'm eligible to get a free report?Free reports will be phased in during a nine-month period, rolling from the West Coast to the East beginning December 1, 2004. Beginning September 1, 2005, free reports will be accessible to all Americans, regardless of where they live.

Consumers in the Western states – Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming – can order their free reports beginning December 1, 2004.Consumers in the Midwestern states – Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin – can order their free reports beginning March 1, 2005.Consumers in the Southern states – Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, Oklahoma, South Carolina, Tennessee, and Texas – can order their free reports beginning June 1, 2005.Consumers in the Eastern states – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia – the District of Columbia, Puerto Rico, and all U.S. territories can order their free reports beginning September 1, 2005.

How do I order my free report?You can order your free annual credit report online at www.annualcreditreport.com, by calling 877-322-8228, or by completing the Annual Credit Report Request Form and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.When you order, you need to provide your name, address, Social Security number, and date of birth. To verify your identity, you may need to provide some information that only you would know, like the amount of your monthly mortgage payment.For more information on free annual credit reports, read Your Access to Free Credit Reports.

The article was taken from http://www.ftc.gov/bcp/conline/edcams/credit/ycr_free_reports.htm and is for information purposes only.

Cheers to your credit health,

Jenell

the debt free lady

ARM Yourself-Get Your Credit Reports and FICO scores..

2005-01-08T11:13:00.000-08:00

Tip of the Day:

Knowledge put into action is power...

Arm yourself with the facts. Then arm yourself with the facts of your own financial situation. Face the music. How can you know where you are going in your financial life unless you know where you have been and where you are right now....

The time is upon us where we can no longer ignore our credit scores. In today's society, even some employers check our credit reports before even considering us for employment. Have you tried renting an apartment lately, even they check our credit now...

Folks we have to arm ourselves with knowledge and truth---- our families are depending on us....

Imagine going into a car dealership, a bank, an insurance company, or mortgage loan office already knowing exactly what your credit score is and knowing that you have done everything possible to ensure that you walk in with the best possible score for your credit situation.

Here is a great place to start... check out the fre***ee Credit Education section and try this cool new tool that gives you an estimate of what your score is and what it is based on...

Click this link now:

Free FICO® Credit Score Estimator

P>S> Don't forget to read up on how to protect yourself against identity theft while you are there.

Cheers to a successful financial life,

Jenell

The debt free lady
"Helping others pursue excellence in Financial Matters"-(HOPE---FM)

Interesting Facts....

2005-01-07T19:37:00.000-08:00

If you find yourself in debt----you are not alone...

"Consumers owe $7.3 trillion, according to the Federal Reserve-double the amount they carried into the last recession." -- -Newsweek

"Consumer credit debt has topped $2 trillion for the first time, continuing what debt experts view as an alarming surge in recent years". -Washington Post

"Bankruptcy filings for the year ending June 30, 2003 hit an all-time high of 1.65 million, a 10% increase over the same period in 2002." - www.shacklefree.com

"Every 79 seconds, a thief steals someone's identity, opens account in the victim's name and goes on a buying spree." - -www.cbsnews.com

Jenell

The debt free lady

There Are Ways to Get Out of Debt....

2005-01-07T19:14:00.000-08:00

Why have I started this blog....

Everyday I talk to individuals and families who need help with debt and credit but don't know where to start... so here goes.....

Who needs help, Americans do!

America is in the middle of a serious financial crisis. As a nation, we're wealthier than ever before, yet we're paying a serious toll with problems such as debt, credit, interest and stress. As a result, we are left crying out for real answers. We want solutions that will help us live a better quality of life with no debt and financial security. We would all love to spend our days enjoy the things that make life worth living. Whether our goal is to become debt free or to improve our credit or to become financially independent- or all of the above- We all have to ask ourselves this question, "How do I get there from here?" I am a debtor but my goal is to be an wise investor.

If you are like me, you have been bombarded with ads that read like this (real ad)
BACK2ZERO can completely eliminate your credit card balances to zero-every penny of your credit card debt. No loans. No penalties. No debt consolidation. No counseling. NO bankruptcy. No loss of your home or other assets. All for $99.

The facts are ladies and gentlemen:

No there is no one size fits all solution, every financial situation is different, but...
Yes there are about 6 fundamental options to handle our debt problems and none of them are overnight cures:

Debt Consolidation Loans
Debt Settlement
Debt Negotiation
Roll Up Programs ( Do it yourself methods)

Filing Bankruptcy
Comprehensive Debt Management services

There are right ways to get out of debt, the question is---Which way is right for you and your family?

More extensive details to come on each option in upcoming blogs or if you need more information now just email me with your questions.

Jenell

The debt free lady

Use Credit Wisely! Did you know....

2005-01-07T18:39:00.000-08:00

Credit Card Corner

NEGOTIATION WITH DEBT COLLECTORS

Did you know you can negotiate with debt collectors? Most people don't know this little tid bit. They either blindly accept what the collector says or they put their heads in the sand and hope he goes away. It's time to become an educated consumer. I'll ask this question again--------- Do you use credit cards?

http://hop.clickbank.net/?worthytips/cccapers

If you do I'd like to recommend you check out the new site of financial wizard, Tom Koziol. It's the site for his new book called, "Credit Card Capers. All Their Dirty Tricks Exposed." Tom will guide you through all the dirty tricks that Credit Card Issuers play to get your money out of your hands and into theirs. And believe me... there are a LOT of them. He'll show you ways to keep YOUR money where it belongs... in your bank account. Stayed to for more on this topic in upcoming blogs

http://hop.clickbank.net/?worthytips/cccapers

The debt free lady

Make getting out of debt your top priority in 2005!

2005-01-07T12:33:00.000-08:00

Breaking News Just In!

Bankruptcy laws may be tighteningCredit card issuers want U.S. to put limits on use for unsecured loans!

U.S. banks have been charging off more consumer loans in recent years after consumers stopped repaying or had their debts discharged through bankruptcy proceedings, and that will likely increase as interest rates rise, said John McCune, a banking industry analyst with SNL Financial in Charlottesville, Va.

The 25 largest U.S. banks charged off $19.3 billion in loans in 2000; that grew to $27.5 billion in 2003, SNL data show.
In 2003, Citigroup led the pack with $7.5 billion in charged-off consumer loans, followed by Bank of America Corp., based in Charlotte, N.C., with $2.3 billion, according to SNL data. JPMorgan was next, with $1.6 billion.
The biggest boom to creditors from the proposed legislation is that many consumers will be discouraged from filing under Chapter 7, said Edward Janger, a professor at Brooklyn Law School.

The bill allows creditors to demand a hearing before a judge to determine whether a person filing for bankruptcy would fail the means test and should instead file under Chapter 13. The cost of hiring an attorney to prepare for and attend the hearing would deter many applicants, he said.
Original URL:
http://www.jsonline.com/bym/news/jan05/288766.asp