• Inflation and economic conditions (fluctuations in the consumer price index, interest rates, inflation, taxes)
• Personal spending style (rate, patterns of spending, conflict of styles within the family)
• Opportunity cost (the cost of giving up one option for another reflects personal tastes and preferences)  Revision of your original estimates is often necessary and can help in identifying your family’s priorities. 

Debt Relief Budget Suggestions

The following debt relief suggestions can help in getting the most for your family’s money:

• Develop a debt relief type system for handling money which involves everyone’s cooperation.
• Be realistic about needs, demands and what the family can afford.  Plan and purchase basics first.
• Establish a debt relief mentality of planning ahead for long-range and short-term goals.  Be prepared to take advantage of special sale prices on planned purchases when they do occur (a savings of 25 percent or more may be realized).
• Become informed about the your indivudal situation and monitor availability and prices of products, including seasonal values.
• Practice sound shopping habits with stress on the idea of debt relief and try to get the best buy. Always “buy,” never “be sold” items. Make a habit of doing pre-shopping research.
• Use and care for goods to get the maximum service with a minimum of repairs and maintenance costs.
• Use ability, talent and time to perform as many services as possible at home rather than buying these services and you should see immediate help toward your debt relief plan.
• Use credit wisely and keep credit costs to a minimum to achieve debt relief .
• Keep accurate records and avoid overpayment of income taxes.
• Don’t become addicted to such items as labels, prestige stores, specialty shops and gimmicks. Evaluate quality of product as well as price.
• Take advantage of public parks, libraries and services and use when advantageous.
• Be alert to fraud and exercise consumer rights and responsibilities in the selection, purchase and use of goods and services. It is estimated that the average consumer loses 5% of their income due to unwise consumer habits.
• Study habits of family members. Identify and eliminate waste such as buying convenience or luxury items or overbuying in quantities. Avoid spending on impulse, misusing goods and discarding useful items.  Keep accurate records of how money is used. Periodically, maybe quarterly, evaluate your progress in using money, and make adjustments.

Steps to Control Money

To get the most from income a family needs to:

• Set short- and long-term goals
• Plan spending and saving
• Build financial security
• Avoid excessive consumption (including unnecessary tax and credit costs)
• Reevaluate spending and saving as conditions change
• Get Debt Relief

A money control system based, on a BUDGET or SPENDING PLAN, can provide debt relief and get you out of debt in a shorter time that trying to simply make minimum credit card payments alone. Such a plan can reduce or eliminate many money concerns and help a family meet their financial needs.

A plan for spending and saving will show not only the family’s projected income and expenditures, but should also be able to help reach goals, build financial security, avoid excessive consumption and eventually provide long-term debt relief.  The family will need to analyze the plan and perhaps look for alternative ways to increase income or decrease expenditures.

In addition, the family must protect what it does own by avoiding misuse of its property and making use of insurance to guard against the risk of loss.  The family can also increase total income by using personal resources such as time, ability and materials on hand instead of money whenever possible.  By continuing to evaluate, make necessary changes and follow the spending plan, a family will be better able to take charge of its money and get the most from it.

Spending Plan Requirements

How people spend money indicates their values and goals.  No one can tell a family how to spend its money or what their lifestyle should be.  Each family needs to decide how its income is allocated.

Family members must work on the plan as a team.  A great deal of discussion is necessary so that individual differences can be heard and common goals identified.  Each member must practice money control in order to stick to the plan.

Each person needs a personal allowance, beginning as early as age 5 or 6.  This amount is for personal spending and an individual may not need to account for it.  A spending plan does not need to be a straightjacket.

Finally, record keeping should be kept simple so that records are helpful and keeping them is not a burden.  The person who enjoys record-keeping the most should be in charge, but all members should know what records to keep track of and where the complete set of family records can be found at all times.

Defining Goals

Often MONEY INCOME is confused with REAL INCOME and PSYCHIC INCOME.  While money income is the actual income in dollars and cents, real income is the total goods and services that income will buy.  A wise family can use sound buying habits to achieve greater real income from its money income.  Psychic income, on the other hand is the amount of satisfaction one receives from purchased goods and services.  Ultimately, psychic income satisfaction is most important for families.  Only through a system of conscious goal setting and money management can this satisfaction be attained.

Effective money management depends on the way a family chooses to live and the goals it plans to achieve.  Think about where your family is today and where it wants to be five or ten years from now.  Make plans and set goals to attain these dreams.  It is extremely important to write down goals and make them specific.  As circumstances change, and as individuals and the family go through various stages of their life cycle, the family’s goals, timetable and spending plan will need to be revised.

The whole family should be a part of the budgeting process, since every decision either helps or hinders achievement of individual goals.  Take time for a family discussion of this important phase of the budgeting process.

The object of the plan is to help the family reach its goals, not to make the family follow confining rules.  Don’t get discouraged if the first plan doesn’t work.  Rework the plan to fit your family’s changing needs and desires.  Review or analyze it periodically to be sure that the spending plan continues to help the family manage the income effectively to reach its goals.

Long-term goals and objectives can give overall direction to your financial planning.  These goals are usually set for five to 10 years or more in the future.  Stock investments or a down payment on a house might be long-term goals.  Keep in mind that many factors will influence these plans.  Be willing to be flexible and make adjustments as needed.

Intermediate goals should be obtainable within one to three years.  A dream vacation or a new kitchen may be intermediate goals.  Short-term goals are those attainable in the next three months to one year, such as buying a new appliance or winter coats.

Both intermediate and short-term goals are often a part of a long-term goal (such as saving a portion of funds each year for college education).  For example, a long-term goal of saving for a college education may be broken down into annual goals of saving $500 for each child in a college fund.  When writing your intermediate and short-term goals be specific in dollar amounts so that you can easily measure your progress in achieving your long-term goal.

If we continue to carry credit card debt, it can often be overwhelming and create a need for debt relief. As mentioned earlier, getting out of debt can often be a process that is made easier by proper money management. Such plans can often help people feel more satisfied with their current income and get more accomplished with less money needed.  It is a known fact that we spend money every day and don’t even think about it.  We all do it and money leaves our pocket, wallet, or purse and is forgotten. We simply do not remember or register what we do with our funds and this creates debt problems and drives the need people for seeking debt relief.  For example, when you stopped at Starbucks this morning, how much was the coffee, the scone, the tax and tip? Is that money you could have used to pay down debt? While small by itself, it ads up and can make a real difference over time.

If we begin to track our spending, and see it in black and white, we can then begin to understand where the money goes and if our decision to spend the money in a certain way was in fact wise or not. Once you understand this, you can make significantly better decisions on how to spend, how to save and truly get out of debt.

“Dr. Briesch’ research affirms solidly what we have already known, that debt settlement is a viable and appropriate method of helping today’s financially strapped consumers receive the much needed help they deserve,” Chris Kesterson, President of TASC, said.

Other key findings of the “Economic Factors and the Debt Management Industry” study include:

• Credit counseling fees and payments for a consumer account can exceed 29 percent of the consumer debt, levels that are “exorbitant”; and

• The debt settlement company has an increasingly higher value to customers with higher account balances and higher total debt.

The report can be found at www.consumercreditchoice.org.

Due to the rising unemployment rate and a growing number of complaints against creditors and collectors, more and more consumers are seeking the services of good debt settlement companies, like those that are members of TASC.

TASC accredited debt settlement companies are some of the best debt negotiators in the industry.  To me, it does not make much sense that when the banks need money most and are depending on the American tax payers for a “bail-out”,  some creditors, like credit card companies, are turning their backs on hundreds of millions of dollars immediately available to them to settle these accounts. I guess they would rather take more from the consumer and just sue those that can’t pay when they have fallen on hard times.

According to TASC research, an estimated $500 million in settlement funds, saved by consumers, are available to credit card companies at this time; additionally, the credit card industry charge-off rate now exceeds 10 percent! 

Further, bankruptcy filings in the United States now exceed 6,000 per day, according to a report from Automated Access to Court Electronic Records. It is very clear that debt settlement works. Any reputable debt settlement program provides the consumer with a three-year plan to get out of debt without the 10-year stain of bankruptcy on their credit report. Consumers avoiding bankruptcy ultimately helps creditors as well.

TO WHOM IT MAY CONCERN 

For anyone who is considering debt settlement as a solution to certain financial problems, such as inability to pay off credit cards, I would highly recommend the company called Debt Regret. 

I was a client of Debt Regret, Dallas, Texas from about April, 2008 to March, 2009.  I was unable to pay tens of thousands of dollars in credit card balances in which my card interest rates were as much as 29.9 %, making it impossible for me to pay my balances off in the future.  Debt Regret took my case and negotiated with the card companies and helped me to pay off settlement amounts that were a fraction of the full amount, in about a year to the card companies.   Before I contacted Debt Regret I mistrusted debt settlement companies, in general, because of some very negative reports in the media about these types of companies.  However, I soon confirmed that Debt Regret was not one of these untrustworthy companies. 

Here are some important conclusions I made about debt regret based on my experience with them: 

Debt Regret seems to have first class negotiators – they got me very low settlement amounts from the card companies that I thought was not possible.  I truly believe that they try to get clients the best settlements.  I don’t know exactly how they do it but they seem to know how and when exactly to negotiate with the card companies or their debt collectors.  

Debt Regret has employees who seem to be very knowledgeable and experienced in debt settlement.

Debt Regret respects the customer.  They sat with me and explained my situation and how they would handle it.  

Debt Regret does not try to force you to make decisions (like car sales people do).  They gave me time to go home and read their literature and talk to whomever I want and find out more about them before agreeing to hire them.  They showed me respect and professional understanding of my dire financial situation.

Debt Regret employees are always available for questions.  My phone calls and emails were always promptly answered. 

Debt Regret never collected the money to be paid to the card companies.  I paid the companies directly after they negotiated the amount.  This means that I was in control of my own finances and felt very comfortable.  

Debt Regret regularly contacted me and gave me advice on saving my money to pay the card settlements.  They made me feel that they wanted to see me out of my problems as much as I wanted to get myself out.    

I highly recommend Debt Regret to anyone. 

Sincerly, 

An Arlington, TX  Client’ of Debt Regret

It is important to realize that no one wants to lose their house, car, paycheck, or damage their credit history. Like most financial situations, the key to true debt relief is proper financial management. Debt management involves several simple steps designed to get your finances under control; such as figuring out a reasonable budget that will allow you to make headway on your monthly bills, avoiding unnecessary interest charges and late fees, and consolidating your debts into a manageable monthly payment. 

To achieve debt relief, you will need a professional debt management specialist who can work with both you and your creditors to structure an arrangement that is best for you. With a proper understanding of financial management and a bit of discipline, it is possible to get back on track to a bright financial future. 

Alan Barnes IAPDA Certified Debt Arbitrator

President and CEO of Debt Regret

http://www.debtregret.com

Below is a brief portion of the article to provide further information for those who may need it. The full article may be found at http://www.prweb.com/releases/2009/05/prweb2478884.htm.

TASC, the non-profit watchdog organization for self-regulating the debt-settlement industry, gathered the information from various sources, including the Consumer Federation of America and National Consumer Law Center, the Executive Office for the U.S. Trustees and testimony by credit counseling companies. 

“The main difference is that debt settlement companies work on behalf of consumers to reduce the outstanding balance of debt,” Chris Kesterson, President of TASC, said. “In contrast, credit counseling companies work for credit cards and banks and usually only obtain concessions on interest rates. Thus, many consumers cannot afford credit counseling payment plans.” 

Other differences between the two services:

Debt settlement companies do not receive any fees, contributions or other forms of compensation from any entities other than the debtor client. Meanwhile, credit counseling companies get money each month from their customers, plus they receive “contributions” from credit card companies and “fair shares” from banks.

Debt settlement programs are typically 36 months or fewer. Credit counseling programs are usually 60 months or more.

For consumers that complete programs, the total cost of a debt settlement program is usually about half the cost of a debt management program offered by a credit counseling company.

Debt settlement programs achieve individualized and customized results depending on a consumer’s circumstances and needs. Credit counseling payment plans are fixed payments over a length of time.

 With both shorter program durations and lower budgeted monthly payments, debt settlement programs frequently see higher success rates and fewer dropout rates.

 “It should be noted that since credit counseling does not seek reductions in the principal amount owed while only getting some reduction in the fees and interest, a consumer using credit counseling can make payments for some time and never get ahead,” Kesterson said. “In other words, credit counseling often does no better than a consumer simply making minimum payments, which often cannot be afforded anyways.” 

About The Association of Settlement Companies

The Association of Settlement Companies (TASC) promotes fair business practices, consumer protection and industry standards for the debt settlement industry. TASC, founded in 2005, serves to protect consumers through an organization seal that represents best practices and standards of reputable companies. The organization also protects its member companies through lobbying efforts at the state and national levels, as well as awareness initiatives to educate consumers on debt settlement as a financial solution. All TASC member companies pledge compliance to strict association bylaws governing business practices and ethics. For more information, visit TASC.

Unfortunately, with today’s failing economy, many Americans are asking this very question. In order to help answer this question, consider the following statements and see if any sound familiar. If so, you may need credit card debt relief. 

You have no idea how much you owe.

You have more than three major credit cards. 

You lie about spending or hide credit card statements from family members.

 You’re at or near your credit limit on your credit cards. 

You write checks hoping a deposit posts before they clear. 

You take out cash advances on your credit card to pay other bills. 

You’ve been denied credit. 

You don’t have any savings. 

You make minimum payments on your credit cards. 

You get calls from debt collectors. 

You’re afraid to look at your statements each month. 

You have no idea how much you owe. 

You have more than three major credit cards. 

Minimum Payments for Debt Relief 

Strangely enough, many people feel that they are ok if they are only making the minimum payments on credit cards and that this, in some crazy way, is actually a form of credit card debt relief. The minimum amount is only your interest, so if you only pay that, you’re never going to see any debt relief; in fact, things will most likely get worse! If possible, it is best to pay off your credit balance monthly. By doing this, you are able to avoid the high interest that makes it so hard to pay anything other than the minimums.

 Balance Transfers for Debt Relief, 

Try and stay away from credit card balance transfers when searching for debt relief. Borrowing from Peter, to pay Paul, is no way to get out of debt. This type of solution can actually worsen your situation. In order for a balance transfer to actually work, you must properly understand all the hidden and disclosed charges associated with it. By this, I mean that if the credit card balance transfer is going to involve numerous charges and fees that outweigh the reason for the loan itself, debt relief, then you may be better off finding another debt relief option. If you do find a viable balance transfer option, then it is important to properly budget, so that you can ensure the loan is paid back under the terms of the agreement. 

Home Equity for Debt Relief 

If at all possible, stay away from home equity loans as a form of debt relief as well. While the interest rate you pay may be reduced, it is paid out over a longer period of time, costing you more, and must be secured with something of value such as a home. When converting an unsecured debt to a secured one, with home equity,you could lose your home if something happens that causes you to miss payments.

 Debt Settlement for Debt Relief

In my opinion, a better option for debt relief is the Debt Settlement route. Debt Settlement involves negotiating with credit card companies to lower the amount of debt that you actually owe.  Please keep in mind that Debt Settlement is a very aggressive form of credit card debt relief and, depending on your score when you enroll, can negatively impact a credit rating. Debt Settlement is not for everyone, but it can be an effective for of debt relief when used under the proper circumstances and done through a reputable company. Typically, consumers are able to reduce the amount they owe by up to 50 percent and see real debt relief in as little as 12 to 36 months.  Debt Settlement may be an effective debt relief solution for consumers who owe a lot of money on credit cards and are barely able to afford their minimum monthly payment or have already fallen behind.

 Credit Counseling for Debt Relief

Others may wish to seek the assistance of Credit counselors when seeking debt relief. Credit counseling involves working with your credit card companies to lower interest rates and late fees to make your minimum monthly payments more manageable. With consumer credit counseling, a consumer will usually see debt relief in 4 to 5 years and may be able to save money on the high interest charges. However, it is devastating to credit depending on how your score is upon enrolling. Nevertheless, it may be an appropriate form of debt relief for people that are paying more than the minimums on their credit cards, but are still suffering from high interest rates. 

Bankruptcy for Debt Relief

For many people in search debt relief, bankruptcy is also available option.  While I’m not an attorney, and cannot provide legal advice, in my opinion, bankruptcy should only be considered as a last resort due to the severe credit implications. That being said, for consumers who owe a significant amount on credit cards and do not have adequate income to ever repay their obligations, then bankruptcy may be a suitable debt relief option. For example, in a Chapter 7 bankruptcy, you are able to liquidate non-exempt assets of value; money made from the liquidation is used to partially repay your creditor. For consumers who do not have any assets of value, typically, they do not have pay back the credit card companies anything. If you happen fall under this category, Chapter 7 bankruptcy is the fastest and most effective form of credit card debt relief and you should consult with a bankruptcy attorney to discuss your options. 

Good luck and best wishes in finding the right debt relief solution for you.