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How do you know if you have too much debt? Credit is a great way to get what you need when you need it, but many Americans are finding that credit can get out of control rather quickly.

Just look at the amount of advertising for refinancing, consolidation, credit counseling and credit cards.

You may not have any problem paying on your debts right now, but that doesn’t mean that you don’t have a credit problem.

Betty and John didn’t see it coming either. They lived as they liked, had several credit cards, two auto loans and a small mortgage that they were prepaying. They were able to make extra payments on all of their debts and thought they were doing well. If there was something they wanted, they just charged it and paid for it later.

Then Betty found that she was no longer able to work. A total surprise, they didn’t realize how much the second income really mattered until the monthly bills started coming in. Suddenly, they found themselves unable to pay their bills.

John and Betty were better off than most. They budgeted and used their savings to pay off all of their revolving debt in one year. Today, they are on the road to being completely debt free in less than a decade.

There are many Americans out there that are in worse shape before they realize that there is a problem. How do you know if you are facing a financial disaster due to debt?

If you answer no to one or more of these questions, you may be at the beginning of a potential debt disaster.

Do you have a savings account?
Do you make more than the minimum payments on your credit cards?
Do you reserve your credit cards for emergencies only?
Do you have plenty of income to pay off your debts?
Do you only have one credit card?
Does your credit card balance go down drastically every month?

If you answer yes to one or more of the following questions, you may already be in serious financial trouble.

Are you at or near your credit limit on your credit cards?
Do you write checks with the hope that they won’t clear until you can deposit something?
Do you know how much you owe towards all of your debt?
Do you pay bills with your credit cards?
Have you been declined when trying to make a purchase?
Have you been denied credit?
Do you bounce checks?
Do you avoid calls from collectors?
Do you lie to those around you about your spending or debt situation?

The first step to changing your financial situation is to realize that you have a problem with spending andor debt. Once you know what the problem is, you can make a plan to fix it. Changing your financial situation isn’t easy. It takes persistence, patience and a lot of hard work and decisions.

There are companies out there that promise to fix everything for you quickly and easily, but they can’t. The only way to change your financial future is to turn your finances around and work at it. If you are motivated, committed and honest with yourself, it doesn’t matter how deep you are in debt, you will find your way out.

Debt is a four-letter word that puts us on parole for the rest of our lives. The cost of living alone is so demanding that debt mounts, mounts, mounts, and breaks us with each heaping rise. We have to pay folding money, pay for apparel, food, gasoline, Uncle Sam fees, rent, installment credit, car payments, institution, etc, that sometimes it is next to impossible not to find yourself humming this four-letter word.

The most highly way to solve arrears is to sit down and find preparations. Breaking down problems is the first step you will occasion to take to find a way out of debt. Once you start to see you have cafeteria plan, you can find it rest easier to cope with your stress and damages. If you cannot find new ideas to help you find ways out of debt, visit your local information science and search for debt solutions and controllers that walk you through take part in permission out of debt.

Exercise many resources can help you to pull up new ideas that lead to solving problems. Rather than compliant messes weigh you down, take action now and find solutions that will reduce your tension and your debts.

If you have access to the Data highway, search the engines to find relevant links that teacher you into debt relief. Stay away from companies that offer to get you out of arrears for a high monthly fee. The concept of getting out of debt is to relieve positive self-image of extra burden, such as a new bill. For the most part, you can call your creditors and make pay-off form. The creditors are often glad to hear from you. Rather than have the scavenger hunt from wretchedness hunt you down, the creditors you could rather keep you as a friend, since they want you to pay your debt and incur future debt with their assembly.

You go through points of no return to finding your way out of debt, so takes some time to learn elimination procedures to become debt free. Debt elimination is not an option, since when you get rid of one debt another exert follow the same patterns of the human mind. You get the point. The solution is getting out of the past claims you owe, set a budget and avoid spending more than you can afford. Pay off one debt at a time, amid by installments you find relief.

To avoid incurring new debt, stay away from credit bet. Use your credit cards to pay demanding bills culmination your credit card as soon as possible to pause, high interest rates. Stay reject from payday lends also, unless you see that you can avoid better part of the levies and can payoff the loan right away. Keep in mind however, that payday lenders often attach a steep fee.

Debt help is easy to get. Even if one doesn’t have a good credit standing, it’s possible to get debt help. Debt help is available in the form of secured and unsecured personal loans and loans for the businesses. There are loans, which are also available against your paycheck, and these are called payday loans. However payday loans can carry an interest charge, which is as high as 25%. On a compounding basis it’s essential that they be repaid back in time. Otherwise you may have to back more than the loan amount.

There are many non - profit organizations that provide loans for those in need at lower interest rates. You can structure a loan repayment structure whereby the debt can be easily paid of. Therefore they will find out how much debt you have at the moment. What are your streams of revenues and the monthly living expenses that you may have. After this they will structure a plan where you can pay the monthly interest payments easily. Thus it makes sense to make use of these non-profit organizations in times of need.

These organizations are present in all counties. One can easily approach them through the Internet, phones and fax. You can also get information about them at your local city or county council. In many cases banks themselves will tell you to approach them, when they think that they can’t help you to get out of debt. It’s important that you check out the credentials of the company before you approach them for debt help. In fact there are companies, which may steal your identity (this is called identity theft) and can land you in further debt trap. So steer clear of these fly by night companies.

Hence ask around for references and only after you have made a thorough check, approach them for debt help.

Consumers seeking debt assistance are faced with a bewildering assortment of debt companies, services, programs, books, ebooks, and websites. How to tell the scams from the legitimate options? The purpose of this article is to help consumers easily spot and steer clear of one particular scam that is growing through network or multi-level marketing schemes. It goes under different names, such as debt elimination, debt termination, or debt reduction. Such names can certainly apply to legitimate programs as well, and the scammers purposely name their bogus programs with the intention of deceiving consumers and stealing them away from legitimate companies. For the purpose of this article, I’ll refer to it as the debt elimination scam, but be aware that it may be called something different.

So how can you tell this scam from legitimate debt elimination techniques? It’s pretty easy, actually. The scam is based on the bogus “no money lent” argument, where the claim is made that credit card banks cannot loan money legally. Through strange leaps of logic, the scammers claim that credit card banks are actually operating illegally, and so you never really borrowed any money when you used your credit cards! Therefore, you don’t really need to pay anything back. You just have to follow their system and the debts will go away because the banks don’t want this knowledge disclosed to the public!

I realize this may sound ridiculous at first glance, but the con artists are very convincing, and there are dozens of websites promoting this dangerous scam. They refer to publications by the Federal Reserve Board, the Uniform Commercial Code, the Truth in Lending Act, and other public laws to bolster their claims and give an aura of legitimacy to their “program.” I’ve talked with numerous consumers who have been conned out of $2,500, $5,000, even up to $15,000 because they believed the hype that these snake-oil salesmen were peddling. If you’re $30,000, $50,000, or $100,000 deep in credit card debt, it can be very tempting to believe in a magic pill. What if you could pay someone 15% of the debt and make the rest of the debt disappear?

As tempting as the promoters make it sound, the debt elimination techniques they are using simply do not work. About the only thing they accomplish is getting you sued by your creditors. As you might expect, creditors hate this scam, and they come down hard on people trying to use this bogus “no money lent” system. You don’t need to take my word for this. Check out the complaints on ripoffreport.com about Liberty Resources, a debt elimination scam that was shut down in Ohio. Or do some research on New Leaf Associates out of Florida, a scam that was shut down by the Florida Attorney General after consumers were ripped off for millions of dollars. I’ve personally talked to people who were caught up in both of these scams, as well as others who were involved in scams that have not yet been shut down.

I also sometimes receive calls or emails from people promoting this system. Because I am easy to reach and I’m a well-known debt expert, they seem compelled to convince me of the worth and merit of their system. Often, the people contacting me are ignorant of the nature of the scam. That’s because this program is frequently sold through MLM or network marketing systems, and a lot of the people involved simply don’t know any better. I respond by making a simple request, and any “true believers” in this system who happen to read this article can take this as a challenge. All I ask is for a single verifiable court case where a judge agreed with the “no money lent” argument and ruled in favor of the debtor. It’s really that simple. After asking this question for several years, I’m still waiting. No such case exists, despite false claims to the contrary. The response is usually that the company must protect the clients’ privacy, but they have “hundreds of success stories” and have dismissed “millions of dollars” of debt.

Nonsense! The only way this system could possibly work is if a judge ruled on it in court. And since court cases are public record by definition, privacy cannot be an issue here. The “client” gave up any right to privacy when he or she tried to convince a judge that the 50 grand they owed on their credit cards was really just “funny money.” And yet the con artists cannot provide a single solitary case in support of their outrageous claims. (Note to scammers: Don’t waste my time emailing me with your threats or your legal mumbo-jumbo. I’ve heard it all before. Just send me the civil docket number for a single case where your “client” won in court using this system, and identify the court venue so I can look up the case myself online. Simple enough, right? I won’t hold my breath though.) In fact, the “no money lent” argument has been shot down in court on multiple occasions. When confronted with this embarrassing fact, the scammers simply reply that the courts are part of a “conspiracy” to keep this information from the public!

The absence of any verifiable documentation is the red flag that tells you this scheme simply doesn’t work. But let me take this a step farther. Let’s set aside for a moment the whole question of the legal basis for the “no money lent” argument. Let’s take a huge silly leap for a moment and say that the system is valid from a legal perspective. Well, it’s STILL not going to work for the average consumer! Why? Two reasons. First, it requires a fight in court, and the average consumer wants to go to court over debt-related matters about as much as they want to have multiple root-canals without anesthetic.

Second, nothing gets resolved this way. I’ve worked with thousands of people struggling with serious debt problems. I talk to people in this situation every day. I can’t think of a single instance where the person’s priority was anything other than to GET THE MATTER RESOLVED PERMANENTLY. The techniques used by the debt elimination scammers do not achieve any resolution at all. Even if the debtor successfully gets a creditor to back off from its collection effort, all that will happen is the creditor will sell the account to a debt purchasing company, who will then try to collect all over again. So the whole process will have to be repeated, over and over again as the debt gets sold multiple times down the line. There is no resolution here. Just a bag of useless tricks. Boil it all down and here is what the debt elimination scammers are telling you: Walk away from your debts, don’t pay, and duck and cover. That’s it. It’s a lot of hot air and bogus nonsense, and it only exists because debt-weary consumers are desperate for solutions.

If you have become the victim of a debt elimination scam, I urge you to take action. Demand a refund in writing. Complain to the Better Business Bureau where the company is located (assuming you can even find them), complain to your state Attorney General and the Federal Trade Commission. And then get on the phone with your creditors and explain that you were misled and that you would like to work things out in good faith. It may be necessary for you to formally retract any documentation that the scammers sent to your creditors. Consumers may also feel free to email the author for further advice or information on this subject.