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Get the FACTS about Credit Cards...

Here is what you need to know...
   to break free of Credit Card Karma:

Credit Card Traps...
Getting Free of
   the Credit Card Trap!

Credit card debt is a major cause of over one million bankruptcies each year. Although it is easy to blame the credit card companies, the truth is that the real cause of your bad financial karma is you.

So you need to change what you have been doing... because doing the same things... can only make the situation worse! Just do these:

* Get Your Head Straight:

You got into debt for a reason. Maybe you were deprived as a child and you are being good to yourself now. Maybe you are just too darn generous to a loved one. Maybe you suffered a layoff, an injury, or other financial disaster. Maybe a former relationship partner got you into debt. Whatever that reason is... figure it out and then stop letting that "perfectly good reason" get you into more trouble!

* Start Spending Less Than You Make:

You have to change your spending habits! The only habit that really matters is to spend less... unless you can do this... nothing else will really help. Use what you are saving for only two things: 1) to pay down your old debt and 2) to keep you from making new charges. It is unrealistic for you to think that you can stop spending money altogether... you still have to live your life.

* Get Real About Your Needs:

List of all your monthly income and expenses. For income, list all sources like salary, wages, tips, interest, etc. For expenses, list housing, food, transportation, utilities, and other necessities of life. The goal is to have your income covers all of your expenses, including debt reduction and emergencies.

* Reduce Expenses Where You Can:

If you cannot increase your income, then you need to reduce your expenses.

- Look at what you are spending and eliminate what does not serve you.
- See how you can make what you have last.
- Sell items that you no longer need.
- See if cheaper version of what you use exists and switch to them.
- Take advantage of coupons and discounts.
- Waste nothing.

Without a disciplined pattern of spending and expense management, it is virtually impossible to make much progress in paying down your credit cards.

* Use Debit Cards for Any Charges:

Start getting into the habit of "paying as you go!" Start to pay in cash or by check, whenever possible. Where you must charge, use a debit card. Decide right now that you have stopped charging on your credit cards. Cut them up if you find it hard to resist the urge to charge.

* Take Charge of Balance Transfers:

Look through your existing credit cards. Select the one with the lowest interest (APR) that still has some credit available. Transfer balances from other cards into that one... the more you can do before you go for debt consolidation... the more you will save and turn your credit situation around.

You need to have LESS credit cards... whatever you do, do NOT open up new credit cards. The goal is to close high APR interest credit card accounts, especially those with high annual fees and charges.

* Make a Deal:

Check with the credit card company where you are transferring in debt. See if they will offer you a lower APR to keep your business. It does work (sometimes) because credit card companies really make their profits from the interest charged on your outstanding balance (not from the "discount" rates!).

* Start Saving!:

I can already hear you saying, "I am so loaded down with bills to pay each month, how could I possibly open up a savings account? I cannot wrap my head around it." Well, that's the problem: you have a brain full of debt and you need to start cultivating a brain full of money!

* Pay Yourself First:

You will grow richer each month if you begin to pay yourself first. Before paying bills, decide on a set amount (even if it is small) that you pay yourself first (deposit it into a savings account) before paying bills. What you focus on magnifies, so you need to focus on expanding your bank account.

If you can do all of the above, you will have perfectly positioned yourself for a favorable debt consolidation (more in that section). This point bears repeating: remember - without a disciplined pattern of spending and expense management, it is virtually impossible to make much progress in getting free of credit card debt.