Excessive Credit Card Debt

There are many things you can do to resolve your excessive credit card debt. The first thing though, is to stop creating more. I have seen more than one person get out of debt briefly, only to fall back into it again. So start changing those habits. Of course, you have the debt, so what can you do to knock it down? here are some ideas.

Discount Your Excessive Credit Card Debt

Settle debts for a discount. When I collected debts for a living, we regularly took 50% as payment in full, if we thought it was the best we could do. If you really can't handle your payments, you may be better off to borrow the money from family to settle your debts for 20% to 60% of face value. Credit card companies regularly take 50% or less as payment in full if they are convinced you are headed towards bankruptcy.

Write a nice letter explaining your situation, and how you will get the money for the pay-off. Explain that you will most likely be filing for bankruptcy, but would like to settle up with any willing creditors before that happens. This let's them know they may be left with nothing if they say no, and you split your remaining assets between other creditors.

How To Pay Debt

If you are trying to dig out of your debt, always pay high-interest cards first. For example, if you have $200 budgeted to apply to your cards each month, pay the minimums only on all others, then put the rest of the money towards the card with the highest interest rate. Once that one is paid off, work on the next highest.

This is a powerful technique that saves a lot on interest charges. If you have three cards, for example, you would pay the minimum of (let's assume) $40 on two of them, and apply the other $120 to the highest interest card. Once that card is paid off, you continue to put $40 towards one card, and now apply $160 to whichever of the two remaining is the higher interest credit card. This is the fastest way to pay down credit card debt.

Excessive Credit Card Debt - Other Tricks

Don't buy the credit card insurance. This typically stops your payments when you are injured or unemployed. It is one of the most over-priced insurances out there, and doesn't eliminate the debt, but just delays it.

Avoid credit card security insurance. It pays for unauthorized charges when your card is stolen, but you are only liable for the first $50 if you report the theft in any case, and many cards already have 0 liability.

Avoid consolidation loans. Don't consolidate debt into a home refinance unless you have a definite plan for paying the loan off early. 6% isn't cheaper than 18% when it is for 30 years instead of 5.

If you have tried some of these techniques without success, contact a nonprofit credit-counseling service. They may be able to help you negotiate lower rates with your banks, and otherwise counsel you on how to reduce your excessive credit card debt.

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Bargain Finder Secrets

Would you like to be a bargain finder? Wouldn't it be fun to be one of those people that always finds a good deal? You can start by learning the secrets of opportunism.

For example, did you know that you can eat a wider variety of fruit than your neighbor, and spend only half as much to do so? How? By buying fruit in season, when it is at the lowest price. As a bonus, it is also of the highest quality at these times. This is opportunism.

You'll notice that this means not always getting exactly what you want when you want it, but you get more variety this way, and you spend much less. You go with the flow. If oranges are cheap, you'll be eating oranges. If apples are in season, you'll be eating apples. Whatever the case, you'll always be finding bargains.

You don't have to eat things you don't like or deny yourself pleasure. You just shop for those things that you like among those that are cheaper now. There will be other, different, great deals next week or next month. Unless you are extremely picky about what you eat, you'll almost always find delicious foods that you like on sale.

This is the premise of opportunism - that you get more by going with the flow. A true bargain finder gets more variety in the long run, and more for the money. This can be applied to many areas of life.

Some Bargain Finder Examples

Before I went to Ecuador a few years ago, there were many interesting places I wanted to go. I chose Ecuador because it was a thousand dollars less to go there than to any other country. I had a fantastic time for a month for $1040 (including airfare). I also met the most wonderful woman I know there, and eventually married her, so you never know what riches you'll find when you go with the flow.

My wife and I go to the movies here in Tucson on Tuesdays, when we can get in for $2.00 each. Others are paying $8.75 a couple miles away. What are they getting by paying four times as much? They get to see the movie six weeks earlier. The movies don't change in those six weeks, by the way, and enough friends have seen them by then to let us know if they're good or not.

Opportunism means not paying more unless you are getting more. It also means making honest choices. Will you actually enjoy that movie more by seeing it now? More than you'll enjoy the FOUR movies you can see in it's place? Do you have to take that fishing trip now? If you're planning to take both a fishing trip and a gambling trip, why not do each when it's cheapest?

When William Danko and Thomas Stanley wrote "The Millionaire Next Door," they found that MOST millionaires bought used cars. They bought BMWs and Mercedes, not old Ford Pintos, but the lesson was

clear: They understand opportunity. Cars often lose half of their value in the first three years, but they're not half used-up, are they? Is it worth an extra $6,000 to say you have a new car (And you will have to tell people, since it's hard to tell a three-year-old car from a new one)?

To be an opportunist doesn't mean just settling for whatever is easy and cheap to get in life. We all have our areas that are more important to us. If you really love those $15 cigars, why not buy them? On the other hand, if you really can't tell the difference between the $5 and 50 wine, why not buy the former? Opportunism is one of the keys to being a true bargain finder.

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Funny Ways To Save Money

I saw a list of funny ways to save money on a "frugal living" website. I'm not sure they were necessarily meant to be funny, but were gleaned from real suggestions sent in. Some cheapskates don't seem to notice that an extra hour at work might put them further ahead than many hours of penny-pinching.

The following are real suggestions, and then there are some funny ways to save money that you really shouldn't try.

Funny Ways To Save Money - The Real Suggestions

One person suggested ways to save money on weddings that included picking up the leftover flowers at a cemetery. I'm not sure how you can tell which are "leftovers."

Another creative penny pincher found a way to save money on a car wash. He washed his entire car using the squeegee at the gas station.

A woman confessed that she has the kids stuff their pockets with the free ketchup, salt and other condiment packets every time they were in a fast food restaurant. That's not all, though. She actually had the kids squeeze ketchup and mustard from the packets into regular jars of ketchup and mustard, and claims she hasn't bought these condiments in years.

To save money on an umbrella, one man suggests going to the lost and found department of any large public library. Tell them you lost a black umbrella. They will have several, from which you can pick the best one and claim it as your own.

Call people long-distance when you know they won't be home. Leave a message for them to call. That way, they pay for the long-distance call.

Funny Ways To Save Money - Don't Try This At Home

Don't pay baby sitters! Get young couples who are thinking about having kids to "rent" yours for the evening. They get to see what it will be like, and you can get paid instead of paying for sitters.

Turn off the TV and all the lights to save electricity. Tell the kids it's a game of hide-and-seek.

Train your dog to beg for food from strangers, so you won't have to buy dog food.

Rub pine needles under your arms instead of buying deodorant.

Take extra napkins from fast food restaurants to save on toilet paper.

Borrow your neighbors toothbrush instead of buying your own.

Visit friends around dinner time to get free meals.

If I write a book on ways to save money, funny or not, will I make much in sales, or will everyone take my suggestion and borrow it from the library instead of buying it?

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How To Be A Frugal Shopper

How To Be A Frugal Shopper

A frugal shopper has skills and ways of looking at things that help him or her take advantage of the money-saving opportunities in life. There are eleven of these techniques below. You can learn them in a matter of a day or two, practice them for a few weeks, and then save money for the rest of your life.

1. A frugal shopper studies other people. Do you know someone who always gets the best deal on cars, boats, or whatever? Ask him how he does it! Some people will tell you that the cheapest coffee in town is $3 per cup, while others will say 50 cents. There are probably people near you living a good life on half of what you make. Learn how others do things, so you'll know your options.

2. Frugal shoppers tell people what they need. Just mention it in conversation. Do you know how many people get free or cheap things, just because they talk? My neighbor wanted to upgrade her living room debt, and was thrilled that I would take her 3-month-old couch off her hands for $30. Glad I mentioned I was looking for one.

3. Frugal shoppers pay cash. Things are cheaper when paid for in cash instead of credit. Want that new patio set? The price divided by the number of weeks you can wait to get it equals how much you need to set aside each week. You'll not only save on interest when you pay cash, but you'll often get a better price.

4. A good shopper looks for alternatives. Maybe you'd have just as much fun taking that discounted trip to the Bahamas as you would going to Jamaica. If you happen to enjoy pizza just as much - or more, skip the expensive restaurant and call Dominoes.

5. Frugality requires knowledge of values. It's tough to get a great deal on a car if you don't know what a great deal is. Start educating yourself on prices, especially before you're ready to buy anything that costs a lot.

6. Use the internet. I bought a ring for my wife on a wholesale site for $47, including shipping. When I received it, I took it to a jewelry store and found the same ring for $150. The internet is also an easy way to learn prices before you go shopping anywhere.

7. Advertise. Many years ago I put an ad in the classifieds that read, "Looking for a mobile home on land - can put $3,000 down." An older couple that was thinking of selling called me, and that's how I bought my first home at a good price.

8. Visit rummage sales. Only you can say if it is worth your time, but you can save a lot of money on a wide variety of things. Late or early is best. Early gets you the super-cheap stuff before others get it. Late in the day you can negotiate almost anything, and even get things free.

9. Visit flea markets. Again, the time you'll spend may not be worth the savings if you make $50 an hour at your job, but these are great places to practice negotiating skills. Haggling over the price is expected. Bring a list of what you need, so you don't buy too much unnecessary junk.

10. Shop at thrift stores. Note which ones have better prices or more of what you need. Many have a color-tag system to keep the stuff moving. Each week all the items with tags of a certain color are half-price. Just watch for those green tags and ignore the rest - their week will come.

11. A frugal shopper does the math. You didn't really save $400 on that car if it costs you $500 more in gas each year. Also, be aware that some stores are cashing in on shoppers assumptions that larger is cheaper. Yes, the gallon of pickles might actually cost more than four quart jars. Be ready to do the math.

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Save Money - More Funny Ways The other day, I was doing research on ways to save money. While checking web sites and discussion forums, I discovered

Save Money - More Funny Ways

The other day, I was doing research on ways to save money. While checking web sites and discussion forums, I discovered that the cheapskates are hitting new - and funnier - lows. Choosing your spouse according to how frugal he or she is, and reusing the plastic from bacon packages were some of the serious suggestions. One contributor to a forum even said, "Instead of buying toilet paper, I use yesterday's newspaper."

My personal choice for the most ridiculous way to save money was to stop drinking beer. What are we trying to save money for? Some more funny ways to save money are below. I suspect - or at least I hope - that many of these are not meant to be serious suggestions. In any case, don't try these at home.

Save Money By...

- Turning off your clocks at night to save on electricity.

- Carrying powdered drink mix to add to water in restaurants, to save on buying drinks.

- Installing a cat door and training your cat to go outside to the neighbors yard to go to the bathroom. This saves on cat litter and time spent cleaning the yard.

- Eating dog food. (According to this contributor, dry dog food is better than canned.)

- Telling everyone you'll be out of town for Christmas, then shopping the after-Christmas sales for presents.

- Asking friends to save the labels from any new products they buy, so you can put them on your thrift-store purchases when you are buying gifts.

- Closing the heater vents in all the rooms except your bedroom before going to sleep.

- Encouraging mice in the house by leaving crumbs around - so your cat will have a free food supply.

- Learning speed-reading so you can read books for free while in the aisle at the book store.

- Leaving furniture in the same place in your house, so you can easily get around at night without turning the lights on.

- Bringing back rolls of coins from Canada, to use at the laundromat and in pop machines. This can save you 20% or more, depending on the exchange rate.

These may be funny ways to save money, but did any of them make you think "Hey, that's a good idea?" If so, do you still pick up pennies on the street? Wouldn't it be more efficient to just stay at work for an extra minute to earn a minutes pay? While you are there, you can take a big drink of water - to save on your home water bill.

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Ways To Save Money
Product Life Cycles

Many of the best ways to save money are about knowing the how the market works and making it work for you. This is certainly true in the case of product life cycles. Undersatnd this cycle, and know where a product is in it, and you can save a lot of money.

Most products have a somewhat predictable life cycle. There is the birth of the product, the popularization, and then the common distribution. Once the distribution of a product is common, it is often much cheaper than when it was new. We have all seen this with VCRs, DVD players, futon couches and other things.

How do you take advantage of this to save money? The primary way to save is to wait if you can. The price of a product that is in the "mature" phase of its cycle can be as much as 80% less than when it is new. Consider that the quality and functionality of a $59 Walmart DVD player is about the same as that of one that cost $600 when they first came out. That's a 90% drop in price.

Fortunately, life cycles seem to be getting shorter, meaning you might not have to wait as long as in the past for prices to bottom out. With some new electronics, waiting a year can mean paying half as much. If you can afford to wait, watch for the time when most people who want the product have it. This is probably when manufacturing costs have hit their low and competition is at its greatest - in other words, when the price will be at its cheapest.

To really take advantage of the life cycle of a product, wait until it is a mature product and a new version is being introduced. With some products, you may need to the new version for functionality, but with others the change is more one of style. In any case, the old version often gets really cheap as it is cleared out. For example, if a new style of running shoe comes along, the existing one may get really cheap, even though it does essentially the same thing.

Pricing Cycles And Secret Codes

Some retailers have their own pricing codes that can be deciphered. "Price hackers," are those who try to break the codes and determine where things are in the pricing cycle. For example, some of them claim that when a price ends in "8" ($3.88, $7.28) at Target stores, the product price is beginning its descent. If it ends in "4" it is as low as it will go.

If you notice clues to these codes, you might figure them out. Of course, if the store you are in doesn't use such price codes, you'll be doing a lot of investigating for nothing. A simpler way to determine what the prices mean is to ask a friendly employee, who may be happy to help you and show off his or her insider-knowledge. In fact, learning how to identify and talk to firendly employees may be one of the better ways to save money.

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Saving Money - $100 Per Hour
To Swim In Your Own Pool?

Is saving money on the things you buy important to you? Then start by being honest about what things really cost you. To understand how difficult (and crucial) this can be, consider the following example.

Saving Money - The Swimming Pool Story

Marty and his wife June loved the idea of having a built-in swimming pool in the back yard/patio area. It would improve the house and be a great way to relax on hot summer evenings. As it was, they were going to the sports complex almost every week, to use the pool there for $7 each. They figured they would be saving money on that with their own pool.

The pool they wanted would cost $50,000 according to the first quote they got. This included all the tile work around it and the finishing touches - everything. Fortunately they knew enough to get two more quotes, and finally found a company that would charge just $40,000 for the whole job.

Soon they refinanced their house, to pull out $40,000 in equity. The pool was done on schedule and on budget, although they did spend another $2,000 for the extras they wanted. Over all they were very happy with their new swimming pool.

They used the pool almost every night for the first summer. But the second year they used it less often, and even grew a little bit tired of the work required. Chlorine monitoring was necessary, filters needed to be changed, leaves needed to be cleaned out, and more.

Marty did most of this work himself to save money. But it still cost over $800 per year for heating, treating and caring for the pool. By the fourth year, the thrill was gone, and they realized they had used the pool just eight times that year. Saving money on it became more of a priority, so they stopped heating it when they weren't using it. Of course this meant it was difficult to use the pool spontaneously (it took a long time to warm it up).

What if you knew ways to spend less on almost everything? What would you do with the money you saved? Travel? Buy something nice for someone you love? Cut your hours at work and relax a little more? The possibilities are endless.

There are more than 400 ways to save money listed in Part Two of the book, including ways too get free dental x-rays and tire repairs.

The real value in the book, however, is in Part One. This is the part that will really change your thinking. You'll see how to get more for your money - more of what really matters to you. You'll learn about the studies in "behavioral economics," how that research is being used to manipulate you, and what you can do about it. You'll learn the "7 Keys" as well

Jeff got a new job in year five, and they had to move. They had to clean and repair the pool cost, which cost about $1,000. It was necessary to get the house ready to sell. This, with the $4,000 in annual costs over the years, added up to $5,000. They also paid $14,000 in interest over the five years, for the money they borrowed to put the pool in (7% annual interest). June was shocked when Marty showed her on paper that it had cost them $19,000 to use of the pool for the five years they had it.

Even worse, the pool didn't add as much to the value of the home as they hoped it would. Swimming pools have value, but a $40,000 pool won't necessarily make people pay $40,000 more for a home. The real estate agent figured the swimming pool added $20,000 to the market value of the house. As it turned out, their home sold for about $20,000 more than a similar one - without a pool - down the street.

Thinking about their "dream pool" Jeff took out a pen and a piece of paper, and started to add up the times they and their friends had used it. It was used for a total of just 400 hours during the five years they had it. Then he added up the costs to maintain the pool ($4,000), repair costs ($1,000), interest costs ($14,000), the capital loss ($20,000), and the extras they bought ($2,000). He arrived at a figure of $41,000, and divided this by the 400 hours of use.

He told to his wife, "The pool costs us $102 per hour." They had been saving money by not paying $7 each to use the health club pool, of course, but they could have paid that every week and taken a week-long vacation to Hawaii every year and still spent less. This was depressing, especially when Marty thought about the time cleaning and caring for that swimming pool.

You can see that saving money on what you buy involves more than good shopping skills. You also have to look at the true cost of the things you buy and do, and make an honest assessment of whether they're worth it. Often there are cheaper alternatives that are just as satisfying (or perhaps more so, in the case of pools that you don't have to clean and vacations in Hawaii).

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