Becoming Debt-Free and Building Wealth - Six Steps to Financial Freedom

Create a Debt Free Life - 10 Gold Nugget Solutions to Financial Freedom

Are you ignoring phone calls from creditors and dreading the thought of being late on another mortgage payment possibly leading to foreclosure? Does it surprise you to know that financial stress contributes to 90 % of divorced couples? Are you providing your children the life you want for them? If debt is controlling your quality of life then it is my intention to inspire you in 10 ways to gain back control for you and your family.10 Gold Nugget Take AwaysTake Ownership for Your Part- In order for you and your partner to move forward on your journey to be free from debt, playing the blame game for your situation must end. Acknowledge the mistakes that you made contributing to the situation, recognize what didn't work and develop a plan together. It is what it is, know that you can change it and regain your freedom.

Get Control of Your Credit Cards - Taking time to understand your credit card terms and regulations is truly pain staking and can change at the discretion of the lender but if you don't know what you are being charged for interest, late fees, penalties and annual memberships you are subjecting yourself to a vicious cycle of slow financial torture. Paying off your lower balanced credit cards can provide you with confidence and momentum and when left open can improve your utilization ratio which improves your credit score.

Re-negotiate Interest- Once you know your APR for your credit cards, Google your credit card company to see what rate new customers are paying. It may be upsetting to learn that you are paying a much higher rate than new customers but this will give you leverage after you compose yourself and make a call to negotiate a lower rate.

Check for Deals- Do you have homeowner's insurance and auto insurance with the same company? Do you have a bundle package price with your internet cable and phone providers? If these are services that you can't live without, then perhaps there is a less expensive package you can obtain if you bundle services with one company, especially if it has been awhile since you checked. Available options may have changed. This money you could be saving could be use instead towards an emergency fund and or tax free retirement plan.

Consolidate- When reviewing your debt; consolidate your finances when you can. Contact a debt management agent in your state to help you. Take the initiative to make your circumstances better if you have unsecured debt of 10k or more. In some states old debt, usually 4 years or older, may be removed. http://www.freedebtreductionhelp.com/county-debt-help/

Mortgage Freedom- Refinance to get a lower interest rate. Research your best option to make at least one extra mortgage payment a year. Depending on your financial situation sending an extra payment of 10% of your mortgage separately each month towards principal is one way. Make sure that you have a written agreement with your bank. Another option is to call your mortgage lender and get on a bi-weekly automated payment plan. Banks don't encourage these plans because they are losing money.

Figure Out Your Latte Factor- An immediate call to action is to figure out how much money is being spent each day on little expenditures that surprisingly add up to a significant amount of money over the weeks, months and year. You can then eliminate these unnecessary expenses and allocate the money instead to savings.

Increase Your Financial IQ- Americans have learned some unhealthy habits when it comes to money, just how big business and government have taught us. Cut the puppet strings and become aware of opportunities to create and grow wealth having the financial freedom you desire and deserve. Research home based business opportunities that can increase your cash flow. Learn ways to create passive income. You must be willing to step out of your comfort zone learning new skills, but really how comfortable is it to be stressed and worried everyday about bills and finances, fighting and arguing with your significant other and living in fear for your future?

Get Automated- When being overwhelmed with finances and trying to determine which bill has priority it can seem almost impossible to get on a payment schedule. Debt Wise is a system powered by Equifax that prioritizes your debt payments for you. You'll have access to your personal debt dashboard assisting you to stay "on plan," as well as credit report monitoring. http://www.debtwise.com/home/en_dw

Invest in "You Inc."- You are your greatest asset and life your greatest gift. Believe in who you are and the dreams you have. Often times we allow our financial circumstances to rob us of those two things holding us back from living a life of fulfillment. Make a list of what you want more of in your life and be grateful for what you already have. You know what doesn't work in your life and only you can change your old patterns and behaviors. Do whatever you must to create the best version of yourself and love your life!

A Debt free program is geared towards getting one out of debt prison to a debt freedom as long as the best choice is made. To start somewhere, you need to determine the kind of debt that you are suffering from. To do this you need to flash back and answer this question, “how did I get in to this debt?”. Once you have an honest answer in mind for each and every kind of debt you are in, then, go ahead and put them in to different categories.

By categories I mean priority debts and non-priority debts. With priority debts, a creditor or the one to whom you own money to can do anything to gain his money in case you are unable to pay your debt. This includes selling any of your available assets or sending bailiffs to come and take your goods, sell them and get their money back. Non-priority debts are those where whether you are able to pay them or not, no creditor has a right to come and take away your goods or harass you. An example is a credit card debt. When you have a list and a category for each debt then you will manage to choose the best debt free program that will fit what you are looking for.

If you are trying to pay a debt for a home or education, then this will need some serious sort of a debt free program. You could think of debt consolidation, equity loans, credit counseling, debt management plans, and debt settlement balancing with the depth of your debt.

At times you may be in a serious debt and almost going for bankruptcy as a solution. Before you could go for bankruptcy you may consider debt settlement program where you negotiate with your creditors. With your income, you may decide to be saving certain amount into an account until you reach a certain amount that can solve one of your debt. Then you negotiate with the creditor associated with that debt on the amount you can manage to pay. After settling one debt continue with the same program until you are able to settle all your debts. Bankruptcy as a debt free program should be your last decision only after all the others have failed.

For all these debt free programs most of them need that you pay every month a certain agreed amount. This might be difficult for people who do not have a regular income and those who depend on their businesses for their income. They may be affected by business environmental changes such that meeting that agreed amount becomes hectic. For this reason, using a debt counselor would be a great idea.

If your debt is a as a result of a credit card you may use debt consolidation loans to settle it. And if you have a house or an asset you could use it as collateral just to lower the interest rate of the amount you have to pay for that loan. However rushing into a debt free program without an idea on what it entails could really cost you. You need to have this information at your finger tips, compare and contrast each one of the programs since they are all meant to solve that debt problem you are in and come up with the best solution that there is.

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on DEBT for Years. For More Information on DEBT FREE PROGRAMS, Visit Her Site at DEBT FREE PROGRAMS