Being deep in debt seems to have all too many people chained to jobs they don’t want to be at. This is a question from one of my readers in that situation.

Q. I’m currently at a crossroad in my life. I have a full time job that I’m not happy at and I feel like I don’t have enough time to spend with my family. The problem is that I don’t see a way out as I have a lot of debt that needs to be paid off. I’d like to create an internet business for myself that will allow me to have more time with my family, help pay off my debts and create more financial freedom in my life. How can I create more confidence to be able to do this?

A. This is a challenge that seems to be on the minds of many. I have been asked this question numerous times by people who are either facing downsizing in their current position or simply wanting to create an additional source of income. The first and most important step is to get clear on your current financial situation so that you can develop an action plan. Often, when you feel “stuck” and unable to see the forest through the trees, it’s easy to lose perspective on what’s real. In order to gain clarity, you will need to list not only your total debts owing but the money you’ve got coming in as well as going out each month. This will allow you to see your numbers in black and white so you can determine if there’s any room to restructure your current financial situation. It’s when we don’t write the numbers down that it’s easy to get vague about how much money we actually have or don’t have available to us. With regards to your debts, if you haven’t already, you will need to put a debt elimination plan in place. Depending on the amount of debt you’re carrying and whether you are behind in payments, there are a number of debt relief options to consider. These include debt consolidation loans (mortgage refinance, home equity line of credit or unsecured personal loan), consumer credit counseling and debt settlement. If you are experiencing difficulty in staying current with your debt repayments, you can research these options to see which one would be the best fit.
With regards to starting an internet business, you need to ask yourself the following questions:
• What interest or hobby do I want to turn into a business?
• What kind of need is there for the product or service I want to offer?
• What are my skills for starting such a business?
• Who do I know that can help me launch this business?
• How much will it cost me to start and run this internet business?
• How much additional income do I think I can generate?
• Will this provide me with the freedom to spend more time with my family?

As you can well imagine, starting a new business will consume your time, energy and resources, especially up front. However, the rewards can be many and if it will allow you to spend more quality time with your family and allow you to perhaps enjoy your current job more, it may well be worth your efforts!

DON’T let the buden of overwhelming debt keep you from doing what you want to do in life - it’s just not worth it. If you have debt you know you need and want to get rid of, it’s time to look at your options on how to get this done. Go to www.debtreliefoptions .com to find out what’s available to you.

Be sure to email me your questions on getting out of debt and building great credit at coach@debtfreediva.com

Knowledge is power and it’s important that you have all the facts so you can make educated decisions around your finances!

Dee Dee Sung
Founder, Debt Free Divas, Inc.
From Self Worth to Net Worth
www.debtfreediva.com

coach@debtfreediva.com

Getting Divorced and your debt:

I got divorced. My spouse was ordered to pay the credit card debts so I don’t have to: False

You get divorced. As part of the settlement, your (now) ex-spouse was ordered to pay the debts (car or mortgage note, credit cards, medical bills, etc.). Some divorce lawyers may tell you that your creditors will honor the divorce decree and relieve you of the obligations. I am sorry. They are wrong. Some creditors may. Most often, they will pursue you as well if the debt remains unpaid. Further, they will report the negatives on your credit report. This will hurt your FICO score and future ability to obtain credit for years to come. In addition, you could still be sued by your creditor(s) for …continue reading the article titled Demystifying the Myths about credit:

Initially, it was Frank McNamara of New York’s Hamilton Credit Corporation that come up with the idea of giving affluent businessmen a convenient way to charge some of their business related expenses.

In 1950, he issued the original Diners Club card. It was made of pasteboard with the customer’s name on one side and a list of twenty-seven restaurants that accepted it on the other. In 1955 the pasteboard card was replaced by one fabricated from plastic.

American Express began issuing cards in 1958 followed by The BankAmericard, issued by the Bank of America. Soon, smaller banks joined the BankAmericard system. In 1977 the card underwent a name change and became …continue reading the article titled Credit Cards, debt of a Nation

It’s that time of year again; soon you will have many sources popping up suggesting ways to spend your upcoming tax refund. Let’s put this in perspective.

First, tax refunds are not “found” money, but a return of money YOU overpaid into the tax system! The average refund check is somewhere around $2,200 and $2,400.

One of the first things that you should do, if you had no abnormal deductions for the year and anticipate that those deductions will remain the same in the future, is to change your withholdings so you don’t overpay in 2006. I have no idea why you would want to give someone (even the government) money to hold onto for a year with no interest being made off of that money.

An easy way to calculate this adjustment is to take your refund amount, divide it by twelve and adjust your withholdings accordingly. Your company’s payroll department can assist you in this process. By doing this, it could give you several hundred dollars …continue reading the article titled Tax refunds a good way to get out of debt

I want to share with you another question from one of my readers - the same concerns are shared by many people and this is one of the most commonly asked questions:

Q. I need help ASAP. I don’t really know where to begin. I am about $30,000 in credit card debt. It’s becoming increasingly difficult to keep up with the minimum payments. I would like to know where I can go to get help without going the bankruptcy route because I really do not want to do that. Thank you.

…continue reading the article titled Knowledge is Power…Know your options for getting out of DEBT

A debt elimination plan starts with an understanding of where your money is going. If you are ever going to become debt free or get ahead financially, you have to start with setting up a budget. I’m not talking about keeping a running tab in your head or doing your best “guesstimate”, we’ve all done that. I’m talking about taking the time to actually calculate every penny that is coming in and going out. It isn’t easy but once it is set up and you get into the routine, it’s easy to maintain and will give you a better perspective about your overall financial situation and allow you to gauge and plan towards the future.

It will take you about 2 hours so; set some time aside undisturbed, and get it done. You don’t have to do the information gathering all at once, start at the beginning of the month. Take a few moments out of each day and start gathering up the materials. Remind yourself that this is the year that I am going to become debt free. I’m going to eliminate my debt and invest in my future.

Treat yourself like a company. Get into the habit of looking at your own personal financial life as you would run a company. Manage your debt and expenses as well as the income coming in correctly and you will reap the rewards as a good CEO or fail as a bad one.

Once you have all of your information, commit to a day at the end of the month that you will put all of it to good use and set up that budget!

Here is what you will need: …continue reading the article titled Get Debt under control by setting up a budget first

When dealing with debt, stay calm and try to focus on the positives. If you are digging yourself into a hole, month after month, the simple solution is to stop digging. The real estate market in most places throughout the Country has created equity in peoples’ homes. Looser lending practices has also made it easier to borrow as much as 10% more that what your home is worth. But is consolidating all of your debt into one monthly payment the answer? Here are some things to look at when considering a debt consolidation loan:
…continue reading the article titled Debt consolidation loans - Good or bad for you?

Credit card companies generate astronomical revenues off of FEES - late fees, over the limit fees, $29 here, $39 there - it adds up fast!
In response to harsh criticism to these ever increasing fees, credit card companies are starting to introduce a round of “new and improved” card offerings - BUT BEWARE and be sure to do your homework before you decide if these offers work for you!

…continue reading the article titled Is There Such a Thing as a Gentler, Softer Credit Card offer?

Perhaps you’ve already heard the news…Credit Card Minimum Payments are on move and that’s UP not Down! For many people, this is enough to create havoc as they struggle to maintain their existing minimum payments.

…continue reading the article titled Credit Card Minimum Payments On The Move!

The American Bankers Association reported today that the percentage of credit card accounts 30 or more days past due rose to their highest levels since the association began collecting the information in 1973.

…continue reading the article titled Credit Card Debt Hits All Time High…