I posted a new article on the DebtSmackdown.com blog and thought I'd link it from here as well, in case you're not signed up to receive automatic updates over there.

Make An Extra $50 Payment On Your Credit Card This Month

If you want to get your cards paid off anytime soon, you need to make more than the minimum payment every month. That article will give you some tips for doing that.

If you're thinking about using debt consolidation to get rid of your high-interest credit cards and other consumer debt, there are some things you should know first. It's not always the best option.

I've just finished a special report about debt consolidation that outlines the good and the bad.

You can get more information about my Debt Consolidation Tactics report here:

InsideDebtConsolidation.com

The concept of debt free living is an easy one. Earn more than you spend and don't allow yourself to live beyond your means. This is much easier to understand than it is to apply however. As a nation, we've seen our national deficit grow into the trillions of dollars. In towns and cities across America, people find themselves heavily indebted for homes, automobiles, education, credit card debt, and many other things. It's safe to say that anyone burdened with cumbersome debt would like to find a way to live debt free. The only way to live debt free is to embark on a path that will lead to paying off your obligations. Everyone with this desire will find themselves at a different starting point, although the finish line is the same for everyone: a life where we spend less than we earn.

The first step to debt free living is analysis. A borrower must understand the depth of their debt problem before they can hope to eliminate it. A simple cash flow analysis is the best way to start; making a list of your monthly obligations and comparing it to your monthly income.

For many people, there is a shortfall that is creating the debt problem - if you need to get out of a hole you're in, the first step is to stop digging. Finding a second job or changing your career to increase your income might be necessary. Trimming the excesses from your budget is important as well. Are there things you're paying for that you can do without?

The second step is to implement your plan. Determine how much income is available to pay down debts after your monthly expenses are met. Get rid of your credit cards so you aren't tempted to use them and throw your debt reduction plan off-track. If you need to consolidate your debts or negotiate with creditors, find a trustworthy credit counselor who can help. Be vigilant in tracking your budget and set goals for yourself to hit certain milestones in paying off your debt. The feeling of paying off that one credit card with the highest interest rate will motivate you to keep going in the right direction.

The final step is to monitor your plan and stay on target. If you establish realistic goals and get organized, you'll know exactly how long it will take you to get out from under your debt. Work every month to reach your goals and find a way to reward yourself when you achieve positive outcomes. Look for opportunities to increase your income or reduce your expenses along the way. Track your progress on a monthly basis to ensure success.

Debt free living is a challenge for everyone, but it's the only place where true financial freedom is found. It's a process that usually can't happen overnight, but the habits you develop in achieving your goals and living debt free will allow you not only freedom today, but the capacity to save for tomorrow.

One of the most frustrating parts of falling behind on a debt is when the creditor loses patience in trying to collect on their own and sends your balance to a collector. You may have heard horror stories about collectors harassing borrowers who are struggling to pay off debts. Harassment was a technique that many collectors turned to historically to collect debts and the Fair Debt Collection Practices Act was put into place to protect borrowers with outstanding debt from abusive, illegal, and unethical collection practices. Consumers do have rights, and the Act defines these rights explicitly.

Prior to 1977 when the Fair Debt Collection Practices Act was passed, debt collectors used several means to collect debts that were annoying, embarrassing, or even dangerous to borrowers. Some of the collector's tactics included threatening phone calls in the middle of the night, showing up at a borrower's place of employment, posing as an attorney, and going to great lengths to let other people know about the borrower's financial struggles. The Act outlined several rules that debt collectors must follow, including:

1. Phone Calls: Collectors are allowed to contact borrowers via mail, fax, telegram, or phone, but calls must be made between the hours of 8AM and 9PM local time.
2. Third Parties: If you have hired an attorney to help with your debt problems, a collector must contact the attorney with all communications. The collector is also not allowed to disclose the fact that the borrower is in debt to anyone outside of the situation.
3. Written Notice: A collector must give written notice with all applicable details of the debt they are seeking to collect within 5 business days of contacting the borrower.
4. Harassment: A collector is not allowed to abuse or harass borrowers, including posing as an attorney or credit bureau employee, share your debt problems with other people, threaten to have you arrested or your wages garnished, or sue you when they have no intention of taking such action.

For borrowers, passage of the Act was a consumer rights issue. Prior to the Fair Debt Collection Act being passed, borrowers were subjected to poor treatment from collectors who would use any means necessary to force payment. Consumers now have the right to fight back. If a collector violates the terms of the fair debt collection act, borrowers can sue collectors for damages on top of court costs.

Opponents of the Act say that frivolous lawsuits have made debt collection more difficult. Some borrowers with legitimate debts make it very had for collects to do their job. Frivolous lawsuits have emerged as borrowers hope to be awarded damages even when the rules of the Act are followed. Consumers should know their rights, but should also know that they are responsible to pay their debts. If debt collectors are contacting you, it's a good idea to discuss your situation with a credit counselor or an attorney instead of fighting debt collectors through loopholes in the Fair Debt Collection Act.

One of the most important loans an individual will ever receive is a student loan. Through student loans, college students are able to attend universities around the world, preparing for a career and successful life. Without student loans, many students would never have the option to attend college. Scholarships are only available to a small number of college students and the cost of a college education is increasing dramatically every year. Unfortunately, many students take on debt before they have the necessary knowledge to make wise financial decisions. Fortunately, there is help available to keep student debts manageable.

College is the most expensive period of time in most students' lives. As of late 2007, the total cost of a year of college, including room and board, was over $32,000 in private universities and nearly $14,000 in public schools. This was a 6.3% increase from the prior year, and costs are expected to keep rising. Most students and their families are not in a position to pay this expense out of pocket. One way to keep student loans manageable is to be aware of scholarship and grant opportunities that a student might qualify for. Reducing the expense to the student is a great way to keep debt from becoming a problem later in life.

One key to managing student debt is to know the various repayment options available. Many lenders offer a graduated repayment schedule, where payments increase as time goes on, since most people will make more money as time passes after college. There are also ways to show your lender that you're making lower than average income to get payments reduced, although you'll pay more in the long run and you'll probably have to reapply every year for the lower payment. Another option is loan consolidation, where student debt is bundled with other debts and paid off so the borrower can focus on paying one big loan instead of several small ones.

Many loan programs also offer deferment, allowing a borrower to defer payments until a later date, although there are qualifications that must be met. Some of the factors that make a borrower eligible for deferment include being unemployed, being a full time student, active military duty, earning a low income, or on maternity leave. Deferment allows the borrower to defer monthly payments, but does not change the amount that is owed to the lender.

The final key to successfully managing student debt is keeping the rest of your financial life in order. College educations are great, but unfortunately some students leave college without a grasp on basic life skills such as budgeting. Learning to live within your means and to be able to resist making major purchases that could lead to financial stress and additional debt will help to ensure that student loans remain a manageable part of your budget.

Student loans are a great and necessary tool with today's college costs, but there's no reason that student debt should ruin a borrower financially.