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In my debt buster tips, I outline various steps to bust debt. In this post, I talk about my overal philosophy to busting debt. There may not be many easy ways to get the debt tiger off your back. A certain amount of risk is inevitably present in all methods. In order to come up with a debt buster option, one that can help get that debt tiger off your back, you’ll probably have to think and devise a game plan. But you’ll need to take care that this plan of yours does not end up making an already bad situation worse.

The first decision you should take when you think of getting rid of debt is to not increase it further. Do not pile up when you know that you’ve already reached a saturation point. The next step would be to think of additional income streams so that you will be able to pay back your debt soon. However, finding more money when you need it is always a difficult task.

So, we come to the next step. Paying back your debt with what you have. This million-dollar strategy is the ultimate debt buster.

Debt busters do not come in pills nor is there a shortcut. It is just a well-thought plan, which will help you curb your spending; save money and pay back more than what you currently owe so there’s no need to file for bankruptcy.

Of course, you can always opt to pay the minimum monthly due with your credit card, but that’s not a great move. Here’s why, though it may take off some burden for now, remember that the interest on the credit is piling and it will take you longer to pay off the debt [credit card included]. A better option would be to finish the credit bill as soon as possible so that you pay less and save more.

The most important thing to realize when you are in a debt situation is that it’s not the end of the road. There is definitely a way out. For options, you may consult a financial advisor or scan the net. Debts are not the end of the road; there are viable options, things you may not have considered yet. So, take the time to go through the list before jumping ship.

I have heard the toughest decision to make regarding cars is knowing which one to opt for or better yet, getting solid info on how to finance a car. I would be more worried about where the money would come from. However, it may be true that with so many cars to choose from within a budget range, the former would be the tougher decision. Finance is not a reason to worry as most car dealers arrange for the required loan themselves.

Experienced people say that not all car finance brokers know how to finance a car. With so many of them in the market, we need to pay great attention before we choose a car finance broker. Not only must his knowledge be sound, we should also be convinced that he is striving to find us the best deal rather than fill his pockets with our money.

Accreditation from a credible financial establishment elevates the stature of any broker. Along with that, also examine whether the broker is attached to a state or national association of brokers. This is an indication that the broker follows a set of guidelines set down by the governing body and is thus, liable to report to a higher authority.

Along with the above-mentioned qualities, good communication skill, friendliness and trust, to keep the documents and information confidential, matter while choosing a car finance broker.

A simple way to choose a car finance option would be to examine those the dealer recommends. These options of how to finance a car are usually credible. Also, there may be more than one option available with varying interest rates and tenures so that you can make the choice according to your requirements.

There are also banks and lenders who offer you personalized services to decide a car of your budget, just like home loans. They do a major chunk of the job, laying out before you the various choices and the best finance options for each.

When you think credit card, you think interest rates. More than the amount you spend with a credit card, it is often the interest on it that haunts you. Credit card defaulters are at the risk of being black marked forever. A bad credit history could render you ineligible for another credit card or may even come in the way of a loan.

So, if you hear about a 0 interest credit card, you are bound to be excited and skeptical at the same time. Zero interest credit cards are good tools to get off some of your financial burden. However, these credit cards are also not without their share of problems.

Most credit cards offering zero interest have an introductory period during which the interest is not charged. It can be used to alleviate stress by a simple yet methodical process.

You may have made huge purchases on your existing credit card and the interest charge on the amount is making things worse. The service charge and the late fee add insult to injury, making the bill much higher than what you actually spent.

A way out is to go for a 0 interest credit card, to which you can transfer the higher bill transaction you just made. This way, you will be free of the interest rates. The only condition is you should pay back within the period when the zero interest offer exists.

Banks are too eager to issue 0 interest credit cards. They hope you will stretch the debt beyond the introductory offer period and then, the interest rates come into play. Thus, systematic handling of such cards is needed to ensure you don’t pile on the already high bill.

Often, the introductory period extends up to six months or a year, enough time for you to make arrangements to pay off the debt you have incurred on the earlier credit card you own.

During the second World War, the US federal government sold treasury bonds to Americans to raise much needs funds for the war. Total value of bonds sold was about 16.7 Billion Dollars. However, people could not cash their bonds for 40 year so, many people put their bonds away somewhere and forgot about them. As a result, much of the money is now unclaimed.

Some of the states are now trying to claim the money from the federal government. With the economy the way it is, many states are just trying to get any money they can get their hands on. Apparently the bonds became due 30 years ago and the states are claiming that the federal government has done nothing to try and find the people they owe money to.

Then again, why would they? Giving out $16.7Billion dollars would leave a sizeable hole in the federal government’s funds, especially as they have spent massively to bail out some of the big banks in the last several months. So the treasury is fighting to keep the money it owes people

1. Pay your bills first: It’s important to put the money aside to pay your bills as soon as you get paid.  That way you will be sure to have enough money to pay them.  Don’t go out and buy things, not even groceries until you’ve put the money aside for your bills.  Most of your day to day expenses are likely to have some flexibility in them, you can limit how much you spend on coffee a day or buy a less expensive cut of meat, but the power company wants all their money.
2. Make your payments on time: Every late payment can hurt you, and in more than one way.  Many utility companies report your payments to the credit reporting agencies, so a history of late payments can hurt your credit score.  It also costs you more if you pay late.  Late fees may be small but when you’re working on reducing debt, every dollar counts.  Three dollars a month in late payment charges on three bills works out to over a hundred dollars a year.
3. Write down what you spend: Managing and paying down debt is all about taking control of your money.  You can’t control what you don’t know, so it’s important to keep a journal of how much you are spending and what you’re spending it on.  Do it before you make your budget and you’ll be able to see what you really do spend money on, rather than guessing and coming up short because you forgot to account for something when you wrote up the budget.
4. Know your credit report: Your credit report is your scorecard in the fight against bad credit.  If you don’t know where you stand it’s hard to move forward.  Most countries let consumers see their reports for free at least once a year.  Take advantage of this, you might find a debt on there that you already paid which wasn’t reported to the agency.  Reports of unpaid debts can really hurt your credit, so it’s important to make sure those are accurate.
5. Pay creditors who report to agencies first: Some creditors report each payment you make to credit reporting agencies, while others only report information if they send your debt to an outside collection agency.  If you have to postpone one of your bills past the due date, it’s always better for your credit score (all else being equal) if you pay the one that reports regularly as it will have the biggest impact on your credit score.
6. Pay your bills when you have the money; don’t wait until the due dates: A lot of people think the due date on a bill is the day you are supposed to pay it, not the day by which the creditor wants to have received the money.  Paying bills as soon as you get paid removes the temptation to take some of the money back to spend on something else.  Once it’s gone, so is the temptation to take the money and spend it elsewhere.
7. Ensure your creditors notify credit agencies when bills are paid: If you do have unpaid bills, it’s important not only to pay them but also to make sure those payments are reported to the credit agencies, otherwise those payments won’t help repair your credit.  Talk to the creditor about this, and if necessary don’t hesitate to follow up with the credit reporting agency yourself.