Your Debts Could Make You Rich!
What is a Chapter 7 Bankruptcy Filing?
What is a Chapter 13 Bankruptcy Filing?
What Assets are Defined as Exempt from Bankruptcy Liquidation?
Your 3 worst debt consolidation moves
What the experts say about Debt Reduction:
How to Communicate With Your Spouse About Money
Your Debts Could Make You Rich!
Solutions to saving money and making money:
"My life is a mess and am up to my butt in debt. I don't know how to make enough money to even pay the interest any longer and I don't know how to make more money. I have tried almost everything, except to stop feeding my kids. What do I do?"
Does
this perhaps sound familiar. Are you or someone you know faced with this? There
is help. There are some answers, but it is not a fast fix but a rebuilding that
is needed. The question is how did we get to where we are today and how do we
change the direction that will fix the current problem and resolve the problem
long term?
Let us start by reassuring you are not alone in what you are going through. The facts are as many as 20% of all Americans are faced with similar problems and all need help. They maybe in different phases of the problem, but sooner or later if the direction is not changed it will end in disaster. Insanity defined is to continue to do the same things and expect different results.
Steps to turning things around, financial healing and then prosperity: 1) Admit to yourself at least there is a problem and 2) if you do nothing about the problem its likely to get worse and not better and 3) understand where you are or what stage of the problem you are in and 4) make a plan, learn new skills and make a commitment to doing something different and 5) follow through with what you have committed to do.
To start with:
There are five parts to learning:
1) Don't have a clue
2) Data: which is simply the ability to remember information.
3) Knowledge: Which is having the data and knowing what it means and perhaps how to use the information.
4) Application: One step up from knowledge and this is where we begin to have some practical experience not only on what the new information says, but begin to learn how to apply it. One ingredient still missing which is experience and how it all works and comes together.
5) Wisdom: Which is having the information, knowing how to use it, being able to apply it in our own lives which will bring wisdom so we can help others. As a part of our own healing it is important to help others as well with what you have learned and accomplished. The old saying what goes around comes around can apply for the negative which is how the term is often used, but also the positive, if you learn to help other, then you will receive help also.
The Kingdom of Hearts, Core
Values
Value #1: Caring for Self and Others Believing in the worth and dignity of
individuals and caring for self and others.
Value #2: Promoting Ethical Practice Ethical practice starts as a condition of
the heart and proceeds to our homes, children and our work place.
Value #3: Respecting Diversity Recognition of the importance of respecting and
encouraging different perspectives and valuing the contributions of all
cultures, groups, and individuals.
Value #4: Encouraging Positive Change Beliefs that change in people,
organizations, institutions and society can be facilitated in a positive manner.
Value #5: Acquiring and Using Knowledge Commitments to the importance of being
open to listening to new concepts that when used become principles and wisdom
that make our own lives better and everyone around us that we influence.
Knowledge is power. Our words to others either have power or not. If not it is
because our words are shallow and have little value.
Value #6: Encouraging and Enhancing Leadership Willingness to mentor and nurture
leaders who will advocate for positive change on behalf of the people we meet in
life. We all lead by example more than what we say. People see in us things that
work or don’t work and are influenced by what they see.
Value #7: Promoting Collaboration Working in a collaborative manner: We are not
alone and no one is an island unto themselves that is unless we do not respect
others.
What is the Kingdom of Hearts?
To some it is one or more of the following depending on the need:
1) A friend, for those that are friendly.
2) Information Center
3) Resource Center
4) Life Learning & Achievement Center
5) A Possible Solution to Increase Income of Individuals and Businesses
6) A Connection to others and often answers.
7) A Referral Center if we do not have the solution.
8) A Publisher & Web Host Provider
9) A Talent Scout & Agency
10) A Partner, Distributor and or Affiliate if Sex Toys, DVD's, Intimate
Apparel, Vitamin's & Supplements
11) Research & Marketing Firm
12) Promoter of Women's Rights and Human Rights
13) Data Base
14) People who provide Arrangements helping people connect.
We basically:
1) Listen to individuals or companies needs.
2) Once understanding needs, research possible solutions.
3) Advise clients of our findings/
4) Develop program that solves the need.
5) Teach and or mentor those using the programs we develop and provide training
to implement solutions and make needed adjustments to program.
The TKOH, Cognitive Restructuring Program (rethinking life, debt and income) is a start and will help take you step by step to getting things turned around one step at a time. As a part of the program you will also have available to you helps with online support in the forums and even private chat with someone like you that has been there and can help you sort things out. It is not just a program but a complete system with the tools and information that you will need in order to get things turned around. It is a survival guide designed for life and living.
Myth: I'll just file bankruptcy and start
over; it seems so easy.
Truth: Bankruptcy is a gut-wrenching,
life-changing event that causes lifelong damage.
Bankruptcy. That word sends chills up the spine. If you're
facing the prospect of bankruptcy or in the middle of it right now, you know
it's a living nightmare. It can devastate your job, destroy your marriage and
steal your peace of mind.
Kathy
called my radio show ready to file bankruptcy. Her
debts
were overwhelming, and her cheating husband had left with his girlfriend. The
house was in his name, as was all the debt except $11,000. Kathy was 20 years
old, and her brilliant uncle - a lawyer from California - told her to file
bankruptcy. Kathy was beat up, beat down, and deserted without help, but she was
not bankrupt. When her soon-to-be ex-husband ends up with all the debt in his
name, he may be bankrupt, but Kathy won't be.
Why Avoid Bankruptcy?
Bankruptcy is not something I recommend any more than I would recommend divorce.
Are there times when good people see no way out and file bankruptcy? Yes, but
I will still talk you out of bankruptcy if given the opportunity.
Few people who have been through bankruptcy would report that it is a
painless wiping-clean of the slate, after which you merrily trot off into your
future to start fresh.
Don't let anyone fool you. I have been through bankruptcy and have worked with
bankruptcy for decades, and it is not a place you want to visit.
Bankruptcy is listed in the top 5 life-altering negative events that we
can go through, along with divorce, severe illness, disability, and loss of a
loved one. I would never say that bankruptcy is as bad as losing a loved one,
but it is life-altering and leaves deep wounds both to the psyche and the credit
report.
Types of Bankruptcy
Chapter
7 Bankruptcy, which is total bankruptcy, stays on your credit report for 10
years.
Chapter 13 Bankruptcy, more like a payment plan, stays on your credit report
for 7 years. Bankruptcy, however, is for life. Loan applications and many job
applications ask if you have ever filed for bankruptcy. Ever. If you lie to get
a loan because your bankruptcy is very old, technically you have committed
criminal fraud.
Most bankruptcy cases can be avoided with proper help, such as
our certified counselors and the use of the TKOH, Cognitive Restructuring
Program (rethinking life, debt and income). Your TKOH, Cognitive
Restructuring Program (rethinking life, debt and income) may involve extensive amputation of stuff, which
will be painful, but bankruptcy is much more painful. If you take the thoughtful
step backward to get on solid ground instead of looking at the false allure of
the quick fix that bankruptcy seems to offer, you will win more quickly and
easily. I know from personal experience the pain of bankruptcy, foreclosure, and
lawsuits. Been there, done that, got the t-shirt, and it is not worth it.
Both types of bankruptcy may get rid of unsecured debts and stop
foreclosures, repossessions, garnishments, utility shut-offs, and debt
collection activities. Both also provide exemptions that allow you to keep
certain assets, although exemption amounts vary.
Personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. Also, unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.
Any bankruptcy is a serious mark against your credit record, but Chapter 13 filings may be perceived as slightly less serious than Chapter 7 filings since you are exhibiting an interest in retiring your debts. The previous definition applies to Tennessee residents. For specific bankruptcy information based on your city of residence visit www.citylegalguide.com for more information.
Chapter 13 bankruptcy allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather than surrender any property.
You will go in to a court room, with trustee(s) and your lawyer sitting at a table. Creditors will be there and can ask the trustee(s) and lawyer questions in an open format.
In 98% of the consumer bankruptcy cases, the creditors won’t do as thing. You will just sit there. The trustee may ask a question or two, like, “Will you reaffirm any debt?” You will have already discussed this with your lawyer. There will be no big surprises. It’s really boring. It will take your whole day. Be zero concerned about it.
Current federal exemptions include:
$16,160 in equity in your personal residence
up to $2,575 in equity in any one motor vehicle
up to $425 in value in any particular item of household furnishings, or wearing apparel, up to a total of $8,625
up to $1,075 in jewelry held for personal use
up to $1,625 in tools of the trade
any unmatured life insurance contract you own, except for credit life insurance contract
any and all health aids such as a wheelchair
the right to receive certain support, personal injury, and disability payments.
There is also a “wild-card” exemption of $800 to $8,880 for other assets not otherwise specifically exempted; the exact amount depends on how much of the personal residence equity exemption was utilized. Each of these exemption levels are doubled under a joint spouse filing, and each are subject to periodic cost-of-living adjustments.
Exercising your right to utilize state exemptions amounts instead of the federal levels is a case-by-case consideration you should discuss with your attorney.
Glossary Terms - Bankruptcy
Asset: Anything that is owned by an individual. With respect to saving and investing, assets are generally categorized as liquid (cash) and capital (investment) assets.
Auctions: A public sale in which property or items of merchandise are sold to the highest bidder. Auctions are great places to find deals, but be careful and do your research.
Bankrupt: To declare bankruptcy. See bankruptcy.
Bankruptcy: A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of Title 11 of the United States Code (the Bankruptcy Code).
Catastrophic: To have a major, negative financial event. For example, to lose your home due to fire.
Chapter 7 Bankruptcy: The chapter of the Bankruptcy Code providing for "liquidation," (i.e. the sale of a debtor's nonexempt property and the distribution of the proceeds to creditors). What's up with the new bankruptcy law?
Chapter 11 Bankruptcy: A reorganization bankruptcy, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.
Chapter 13 Bankruptcy: The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
Credit laws:
Fair Credit Reporting Act (1971): Federal law that covers the reporting
of debt repayment information. It establishes when a credit reporting agency
may provide a report to someone; states that obsolete information must be taken
off (seven to 10 years); gives consumers the right to know what is in their
credit report; requires that both a credit bureau and information provider (i.e.
department store) have an obligation to correct wrong information; gives
consumers the right to dispute inaccurate information and add a 100-word
statement to their report to explain accurate negative information; and gives
consumers the right to know what credit bureau provided the report when they are
turned down for credit.
Fair Debt Collection Practices Act (1978): Federal law that prohibits debt collectors from engaging in unfair, deceptive or abusive practices when collecting debts. Collectors must send a written notice telling the name of the creditor and the amount owed; collector may not contact consumer if he or she disputes in writing within 30 days (unless collector furnishes proof of the debt); collectors must identify themselves on the phone and can call only between 8 am and 9 pm unless a consumer agrees to another time; and collectors cannot call consumers at work if they are told not to.
Credit report: Report showing your payment history.
Garnishee: A court ordered settlement that allows a lender to take monies owed directly from a borrower's paycheck.
Grace period: A time period during which a borrower can pay the full balance of credit due and not incur any finance charges.
Myth: Aren't there positive uses of a credit
card? Like rebates and airline miles?
Truth: Responsible use of a credit card does
not exist. Credit card debt is a major problem in America.
There is NO positive side to credit card use. You will spend more if you use credit cards. Even by paying the bills on time, you are not beating the system! But most families don't pay on time. The average family today carries $8,000 in credit card debt according to the American Bankers' Association.
Now
let's talk about the rebates. If you were using a credit card at 5%, you would
have had to have spent $80,000 to get $4,000 rebates on new cars that lost
$6,000 of value when you drove them off the lot. That is not a good deal!
Cash vs. Credit Cards
When you
pay
cash, you can "feel" the money leaving you. This is not true with credit
cards. Flipping a credit card up on a counter registers nothing emotionally. If
you use credit cards instead of cash you will spend 12-18% more.
This is money you could have saved.
If you "have to" use plastic, I suggest a debit card. I use them for travel and the occasional convenience of ordering something over the Internet or phone. Other than that, I use cash.
Personal finance is 80% behavior. You need to cut out habits that make you spend more. You do not build wealth with credit cards. Use common sense. When you play with a multi-billion dollar industry and you think you're going to win at their game, you are naive. You cannot beat the credit card companies.
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Myth: Debt is a tool and should be used
to help create prosperity.
Truth: Debt isn't used by wealthy people
nearly as much as we are led to believe.
Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt, then you're a slave because you do not have the freedom to use your money to help change your family tree.
According
to a recent USA Today article about debt, 78% of Baby Boomers have
mortgage debt, 59% have
credit card debt, and 56% have car payments. It takes a lot of will,
discipline, courage and help to slay the debt monster. But it can
be done. Imagine how much you could put toward retirement if you just
didn't have a stinking car payment? This is how the wealthy really build their
wealth. Debt is dumb. Welcome to the real world!
Myth: I can get quick debt help over the
phone or Internet.
Truth: True debt help is not quick or easy.
It starts in the mirror with you.
Where do most people go for debt help? Most people try credit repair companies, debt consolidation, debt management, or bankruptcy. Companies touting quick, pain-free fixes are really scams that cause more harm than good. These services almost never help solve the true debt management problem - one's behavior.
Most
people don't know that financial planners make almost all of their money by
selling you a product such as life insurance or mutual funds, instead of
spending time counseling you. They're not evil; they just don't get paid to help
you get out of debt. We provide true debt help by focusing on
the real problem - you.
The TKOH, Cognitive
Restructuring Program (rethinking life, debt and income)
So my
TKOH, Cognitive Restructuring Program (rethinking life, debt and income) begins with a challenge. The challenge is you.
You are the problem with your money. The financial channel or some tape sets
aren't your answer; you are. You are the king of your future, and I have a plan.
The TKOH, Cognitive Restructuring Program (rethinking life, debt and income) plan isn't theory. It works every single time. It works
because it is simple. It works because it gets to the heart of your money
problems - you. It is based on a series of prices that must be paid to win. All
winners pay a price to win. Some losers pay a price and never win, and that is
usually because they didn't have the benefit of a proven plan for financial
fitness.
Is it easy? No. In fact, it's really hard most of the time. But it's worth it. For over 10 years, we've been teaching people how to get rid of debt forever. Now with over two million listeners to our radio program, "The Dave Ramsey Show," about 200,000 families through our Financial Peace University program and over 1 million visitors a month to our Web site, people are getting out debt by practicing good debt management. The TKOH, Cognitive Restructuring Program (rethinking life, debt and income) is a great book to begin your financial makeover.
Myth: The debt management companies on TV, like AmeriDebt, will save me.
Truth: You may get out of debt...but only
with your credit trashed.
Debt management companies are springing up everywhere. These
companies help "manage" your debt by taking one monthly payment from you and
distributing the money among your creditors, with whom they've often worked out
lower payments and lower interest. This is not a loan as with
debt consolidation. Sometimes people get the two confused. However, because
Americans are up to their eyeballs in debt, the debt management business has
become one of the fastest-growing industries today.
Companies like
AmeriDebt and Consurmer Credit Counseling Service can help you get better
interest rates and lower payments, but at a price. When you use one of these
companies and then try to get a Conventional, FHA, or VA loan, you will be
treated the same as if you had filed
Chapter 13 bankruptcy. Mortgage underwriting guidelines for traditional
mortgages will consider your credit trashed, so don't do it. Real
debt help is found only in changing your behavior.
In short, debt management companies are out. Hard work is in. Change
your financial behavior and change your life...for good. True debt management is
about one thing - you controlling your money.
Real Debt Management
The good news is that there's not some magical, mystical formula to good debt
management. The solution is common sense and having a plan for your
TKOH, Cognitive Restructuring Program (rethinking life, debt and income). Grandma's simple way of handling money. Good debt
management is 80% behavior and 20% head knowledge. It isn't rocket science as
some debt managment companies try to make you believe.
Is it easy? No. In fact, it's really hard most of the time. But it's
worth it. It's amazing to see people change their lives through simple
determination and having a plan that works...every time. Once you have a real
debt management plan in place, its only a matter of time.
We have people every week email or call us about how they have paid off $10k,
$20k, sometimes even $100,000 in debt. Now, you may be thinking, "Yeah, right.
They must be making 6 figures to do that." NO! These are just people who are
serious about
getting out of debt. Many of them are making $30,000 to $50,000 when they
decided to be debt free. It's all a matter of attitude. We call it "gazelle
intensity".
The Basics: Your 3 worst debt consolidation moves
If you're up to your eyeballs, the fantasy of debt consolidation can suck you right in. Watch out for the slippery side of consolidation loans, balance transfers and other 'easy fixes.'
The phrase "debt consolidation" has always
had a magical ring to me, but the deeper one goes to find the truth
the worse it looks. There a difference between debt reduction, which
is a good idea and consolidation, but often consumers are somewhat
mislead. "DEBT RELIEF IS JUST A CLICK AWAY!" "CUT YOUR MINIMUM MONTHLY PAYMENTS BY 50% OR MORE!" "SLASH YOUR INTEREST RATES DOWN TO ZERO!"
These promises are incredibly alluring to anyone who is caught in
the quicksand of having too much consumer debt, and who will believe
anything, do anything -- click her ruby slippers (bought on sale for
just $400!) three times -- to make it go away. But before you start
skipping down some financial yellow brick road to see the Wizard of
Debt Consolidation, remember this: Watch out for those flying
monkeys.
As if somehow, someone would have the power to mush my debt into one
neat little package, which by some incredible financial alchemy
would also then shrink the debt itself -- and I'd only owe a hundred
bucks or so.
I know I'm not the only idiot who's had this fantasy, because an
entire industry has sprung up to support it: The Debt Consolidation
Industry and Covert Sting Operation. Every day, I get at least one
piece of regular mail offering me low-interest balance-transfer
deals for credit-card debt, or arm-twisting e-mail from unknown
credit organizations that scream things like:
Three bad debt-consolidation moves:
1) The Hard-Money Loan
"The biggest myth about debt-consolidation loans is that they're
easy to get," says Scott Kays, president of Kays Financial Advisory
Corp. and author of "Achieving Your Financial Potential." If you
really need a loan, it's probably because you've already missed a
few payments and your credit history has more dings in it than a '74
Ford Pinto.
And that's the problem. Kays says that if you are a credit risk, the
consolidator may entice you with promises of an easy-does-it loan,
and end up charging you higher interest rates than you're paying now
-- as high as 21% or 22%. "Your monthly payment may be lower" with
one of these loans, "but you'll end up paying more," says Kays.
2) Debt Consolidators Who Promise to Take
Care of Everything
This is the fairy godmother fantasy. This Nice Big Debt
Consolidation company comes along and swears they'll make your life
soooo much easier. They'll negotiate lower interest rates, reduce
your monthly payments -- and all you have to do is make "one EZ
payment."
In reality, many debt consolidators build in a fee as part of the
monthly payment you make to them. It's usually about 10% of the
payment (i.e. about $40 on a $400 monthly payment). They pass along
your payments to the creditor -- some debit directly from your
checking account -- and get back a 10% to 15% slice that the
relieved creditor is only too happy to rebate to the consolidator.
Is it worth paying someone else to do what you can do on your own,
i.e. negotiate lower interest rates and stretch out your repayment
schedule and pay off the highest-interest debts first?
To desperate ears, this might sound like an ideal solution,
especially when you talk to these people and they scare the bejeezus
out of you. I interviewed two, Cambridge Credit and Counseling
Services and Integrated Credit Solutions. Each offered similar
services, and I don't recommend either of them. The senior credit
counselor I spoke to at Integrated told me, in grave tones, that it
would take me 379 months -- or 32 years -- to pay off my debt. With
their services, however, they would "save me 27 years," and I could
pay off my debt in just 53 months, or about 4 1/2 years.
That's funny, because when I plugged my debt into the
MSN Money Debt Consolidator -- a less biased source, since they
ain't getting no fee from me -- they said I could pay off my debt in
41 months, providing I make slightly higher minimum payments to each
card: a total of just $60 extra per card.
Here's another risk with consolidators you should know about: they
have been known, in some cases, to make late payments or even miss
payments, thus worsening your plight (and your credit record).
After I got off the phone with Integrated, I had to ask myself: Is
it worth paying someone else to do what you can do on your own? That
is, negotiate lower interest rates and stretch out your repayment
schedule and pay off the highest-interest debts first? I don't think
so.
3) The Balance Transfer Trap
Low-interest balance-transfer cards are a dime a dozen these days,
but remember that those rates only last a few months -- and then you
have to switch cards again. The danger is that at some point all
this activity begins to show up on your credit report, and you start
to look like a bad risk. Then if you get turned down, "you could be
left holding the high-interest card you were hoping to dump," says
Kays.
If you think you can swing from the balance-transfer vines for a few
months, just make sure you formally close all your accounts
yourself, and then notify the credit-card company to mark the
account "closed at customer's request." "Otherwise, on your credit
report, it will look like the creditor closed your account," says
David Mooney, PR director of Equifax, one of the biggest credit
reporting agencies. Thus making you look like an even worse risk,
even when you're doing your best not to be.
Your best debt-consolidation moves
If you own a home and have some equity in it, you have a couple of
options that are relatively low in cost. These are pretty
straightforward:
Take out a home equity loan. A home equity loan has the
advantage of carrying a fairly low interest rate, currently in the
high single digits, and what interest you do pay is tax-deductible,
Kays points out. Most fixed-rate loans carry a 15-year term and
require that borrowers pay an origination fee of $75 to several
hundred dollars, plus the cost of an appraisal and title insurance.
Do a "cash-out" refinancing. Another option for those with
home equity is refinancing your property for greater than the amount
you owe and using the extra cash to pay off debt. You get very low
interest rates this way, but you're stretching payments out over 15
or 30 years. The total interest cost over three decades can wind up
being pretty huge, so think of this as a one-time-only (if ever)
option.
Refinance your car. "Most people don't think of it, but it is
a secured loan and you can borrow against it," Kays says. The danger
there is that you may run out of car before you run out of debt.
It's tough to buy a new car when you owe more than it's worth.
Get a personal loan. If you have reasonably undamaged credit,
you may qualify for an unsecured loan. Credit unions (see link to
the left) typically offer lower rates than banks, but even there you
can expect a rate of 11% or more. Still, that may be a whole lot
less than the 20%-plus you're now paying to the credit-card company.
Negotiate better terms. You can do this for yourself easily.
Just call your credit-card company and ask them to do it (many
customer service people are authorized to reduce rates right there
on the phone).
Another alternative. Or you can get help from an organization
like National Foundation for Credit Counseling (see link to left).
NFCC has branches throughout the country; they are a non-profit,
community organization that provides free and confidential debt
management advice to anyone who needs it. You can even consult with
them over the phone, like I did (see below).
Like other debt consolidators, NFCC gets paid by creditors, so it's
in their best interest to work out a repayment plan rather than
advise you to declare bankruptcy. Not that you want to be advised to
declare bankruptcy, but in certain cases it may be your best option.
NFCC makes no outlandish promises beyond the prospect of a saner
financial life, and the possibility of qualifying for their low-rate
mortgage program. They also offer low-cost financial planning -- a
resource I'm definitely going to look into for a future column. Once
I have some finances again, I will need someone to tell me what to
do with them!
Since writing about my struggles with debt, I've become religious
about paying as much money as I could every month. (Thing was: I
still carried my credit cards in my wallet. So my new
get-out-of-debt tip would be: Take the cards out of the wallet.
Otherwise, you will use them.)
Then those big payments started to have an impact. But I was on a
mission. I wanted my debt gone. I turned to debt calculators, talked
with friends, and ultimately came up with a two-pronged plan of
merciless debt destruction. Operation Enduring Freedom from Debt.
First, I took on some extra freelance work that, eventually, would
pay me a little bit more than my debt in four big chunks. While I
was waiting and working, I decided to consolidate my debt and turned
to NFCC as my resource.
Here's the best part of NFCC: 1) They give you a one-hour
consultation, by phone or in person, to help you decide if you need
a Debt Management Plan. 2) In order to do the consultation, they
make you fill out a form that details all your expenses.
Writing down my daily expenses is Personal
Finance 101, and I've always found it mildly useful. NFCC advisor
Nina Reiss, on the other hand, walked me through an entire year of
expenditures. Now THAT was eye-opening. She asked me what I paid per
month for things I'd forgotten even were expenses: subscriptions,
holiday gifts, underwear, new socks, groceries, birthday gifts,
movies (even rentals), my yoga classes, banking fees -- you'd be
amazed what you pay just to live a semi-civilized life.
Ultimately, Reiss felt that I was living about $100 a month beyond
my means, but that I was paying as much as I could toward the debt
on my own. We did the numbers and figured that even with their
interest-rate reductions, I could still pay off my debt without
their help -- as long as I cut back my expenses so that I was living
within my means. So in the end, dear reader, getting out debt boils
down to one thing and one thing only (which you and I already knew):
elbow grease, peanut butter lunches and living like a more
reasonable human being.
The Truth About Debt Reduction: What you need to Know (and what they won't tell you)
Myth:
Only the rich can be debt free.
Truth:
Anyone can become debt free. True debt reduction is plain common
sense and hard work.
Many hard-working people get into debt because of mistakes. TKOH
works with those people every day. What we are talking about is
those who are willing to keep working hard. There is hope to get out
of debt and have a financially peaceful future.
Beware of Quick Fixes
But then there are lazy people who look for a quick fix, such as debt consolidation or debt management. Real debt help is not quick or easy. Laziness is a character flaw. You need to be willing to work and sacrifice in order to fix the situations that you created with your own irresponsibility. If you are not willing, then you cannot be helped.
Are you willing to get another job and work a few 80-hour weeks?
If you are in financial stress because of something you've done, you
need to get yourself out of the mess by working. If you think that
it is too hard, you will never get out of the debt that you brought
upon yourself.
Laziness is a sickness, and it will get you absolutely nowhere in
life. We all make mistakes, but the question is whether you are
willing to take responsibility for your mistakes!
You need to learn from your mistakes or you - and
your children - will be doomed to repeat the cycle. How badly do
you want to be out of debt?
How to Get Out of Debt
We've developed a process that helps you reduce your costs and increase your income over a period of time, not only for individuals or families, but business as well. It makes the debt reduction process simple and doable by reducing costs and making wiser choices by doing some planning and then increasing income. This is not a get rich scheme, but one that will help you map our your financial freedom using sound and practical information. To start, click here so some of your questions can be answered.
The Truth About Money and Relationships
Myth: My spouse and I shouldn't talk about money because it only leads to
fights.
Truth: You can't have a great relationship
until you can communicate and agree about money.
Larry Burkett, noted financial author, says, "Money is either the best
or the worst area of communication in our marriages." After years as a
financial counselor and working with marriage counselors, I know that money and
money fights are the #1 cause of divorce, not to mention the thing we fight
about the most.
So if you are married and have money fights, you are normal. But
if this is a real problem area for you, there is also an opportunity to improve
your relationship and maybe even reach agreement with your spouse. I'm not
talking about agreement brought on by surrender, but rather by each person
getting a vote, understanding the other's view, and finding common ground.
Let's face it - if we can agree on the checkbook, there would be nothing left to
fight about except who gets the remote. But there is so much to fight about and
so many opportunities to be misunderstood.
Men and Women are Different
When it comes to money, men tend to take more risks and don't save for
emergencies. Men use money as a scorecard and can struggle with self-esteem when
there are financial problems. Women tend to see money more as a security issue,
so they will gravitate toward the rainy-day fund. Because of their need for
security, ladies can have a level of fear - my wife, Sharon, calls it terror -
when there are financial problems.
Men and women are different in how they view money, and it is
largely because they process problems and opportunities from different
vantage points. On top of the fact that men and women are different,
opposites attract. So what does that mean?
It means that chances are, if you're married, one of you is good at working
numbers (the nerd) and the other one isn't good at working numbers (the free
spirit). That isn't the real problem. The problem is when the nerd neglects the
input of the free spirit or when the free spirit avoids participating in the
financial dealings altogether.
Marriage is a Partnership
Marriage is a partnership. The preacher said, "And now you are ONE." Both
parties need to be involved in the finances. Separating the finances and
splitting the bills is a bad idea. Listen up, nerds. Don't keep the
finances all to yourself. Don't use your "power" to abuse the free spirit.
Free spirits, don't just nod your head and say, "Yeah, that looks great,
honey." You have a vote in the budget committee meetings, too. Give feedback,
criticism and encouragement. Work on the
budget together!
As you work on your finances together, you will begin to change your family
tree. One of your main goals in your marriage should be to pass a legacy
down to your children and grandchildren.
Your debts disappear (even your house is paid off) in 5-7 years, and you retire debt-free... using nothing more than the money you're currently earning plus one of today's best-kept secrets: Does that sound possible?
Here its not only possible, but very
real if you can follow simple step by step instructions, starting with the
ones listed here in the Money Guide as it is designed to take you from even
bankruptcy to being well off financially within a year or two 
depending
on how hard you work. The program is simple and it is based on your success.
As you get helped, you help others accomplish what you have and are
accomplishing. Nothing could be simpler! Whether you are in debt or not, the
TKOH program was designed to help ordinary people, just like you turn their
lives around, learning a better path in life and sharing that path with
others, because you know its real and it works. It's that simple. The only
way it can fail is if you fail to follow through and walk the steps.
This program starts with being able to have the information you need to turn your life around in all aspects of your life, if you want to and we even provide you with mentors that will help you each step of the way. It's literally all about building relationships with other people and helping them as you are being helped. Get out of debt and help others also? Too good to be true?
The facts are we all start somewhere and end up somewhere in life. Traditional thought is what gets us into trouble. We all learn from those that have influenced in the past. For example: Go to school. Get a Job. Get Married. Have a Family. Buy a House. Take care of your family. A penny saved is a penny earned. Etc. Sound familiar? Most people have heard this as they grow up, so what do they do? They do the same things. The problem is the ones that influenced you did not know a better way or better path.
This method allows people to get into debt and become prisoners of debt! Why? Because with the job and marriage, house, cars, children and school, come debts and soon instead of working for yourself one ends up working in life just paying the bills, not getting out of debt, but creating more debt to pay for things as they come up, instead of having the funds.
The facts are, as long as you owe people money, they own you! Here is what you can do to help stop the insanity. Start with making a promise to yourself and family: "to never be this vulnerable again!" We at TKOH are people just like yourself that has been there. We have become a think tank looking for ways to extend life and increase the quality of life, start with "getting out of debt and learning a different path to make an above average income." By you walking the steps yourself, you will be able to help others, just like you get out of debt themselves. People want to know and you have the ability to show them a better path in life, starting today and you being committed to learning a better way to do things.
With this method, you will be able to turn your debt into wealth that anyone who uses it can be a millionaire by the time he or she retires. And best of all ... you can accumulate your $1 million nest egg using nothing more than the money you're currently earning.
Over half a million people are using this method, and now it's your turn.
Stop being a prisoner of debt today! Discover how good it feels to wake up each morning knowing you own your car, house, and everything you have, and you don't owe a penny to anyone. No more bills in the mailbox.
The TKOH method transforms your debt into wealth - growing to $1 million - using nothing more than the money you're currently earning. Thanks to the best-kept secret of the investment industry, you're in control of your life: free, financially independent - enjoying peace of mind, knowing your family is safe and you're set for life!
Solutions to saving money and making money:
Strategy: Decrease tax liability, Increase income and net worth.
Steps:
1) Save on taxes by owning a home business. It can save you as much as 60% from what you are currently paying in taxes. That may in itself increase your income as much as $7,000 per year to start with. More info>>>>>>>>
A home business qualifies for all of the same tax
deductions regular businesses do. In the eyes of the IRS, the only difference
between most home businesses and Fortune 500 Companies is their size, and the
fact that home businesses can also deduct many household and living expenses.
Owning a home business will entitle you to deduct thousands of dollars in every
day expenses. After all, why pay more in taxes than you have to?
Listed below are just some of the items you are allowed to deduct:
Your car and car expenses.
Your mileage.
Your home computer, printer and other office equipment.
Your home. If you're not a homeowner, you are allowed to deduct the area where your home office is set-up.
If you're a homeowner, you may deduct a portion of your property taxes and utilities.
Your travel expenses.
Your restaurant meals, entertainment, dinner parties.
You may pay wages, tax free, to two of your children, if they are involved with the business.
You may deduct your families health insurance.
NOTE: To qualify for the above tax deductions, you must be actively working your home business.
2) After making a selection starting with TKOH, Cognitive Restructuring Program (rethinking life, debt and income) which is a valuable. The next step is to make a selection here TKOH Business Opportunities which can get you started in business for as little as $2.95. Total investment thus far is about $26 US and can save you to start with as much as $7,000 and will vary per person.
3) Next step is to organize what your are doing starting with a place in which to work from located here.
4) The next step to turning things around is to develop a business plan, which is what you are going to do and how you are going to do it and assessing what it will take to get it going and even to completion. You will note that in the TKOH, Cognitive Restructuring Program (rethinking life, debt and income) there is a ready made plan for you on how to make money by helping others which is a part of the following pages:
a) The Kingdom of Hearts, Business Network (tkoh.biz)
b) The Kingdom of Hearts, American Dream (tkoh.us)
c) The Kingdom of Hearts, Publishing Services, Author Services from Editing to Marketing (tkoh-publishing.com)
The Kingdom of Hearts, Web Hosting Services, for Adult and Non-Adult Content (tkoh-webhosting.com)
d) Sample of ready made store which qualifies you to be in business: The Kingdom of Hearts, Sex Toy Store (tkoh-sextoys.com) Cost is $24 a year which includes web space and your own domain.
Much of this may be overwhelming depending on where you are in the scope of things. The first step towards healing and turning things around and stop procrastinating as that does make things worse. One classic definition of insanity is to continue to do the same things in life, but expect different results.
Your choices are simple regardless if you are in debt or not. That does not matter, but if you do not have a plan besides getting married and letting someone else figure it out for you, the problem still exists. Facts are no plan then plan to fail. One of the saddest things things are to work all your life and have little or nothing. None of us can see the future, but the costs of getting old and continue living are sky rocketing and there is no safety net unless you build one for you and your family. In 1975 the average hospital room was $107 where today the average is $1200 per day. Insurance costs so much and the government only picks up so much. Give you and example and you can ask any diabetic or heart patient what it costs to stay alive. The cost is $500-$1200 a month and that's just for the basic medications. That does not include anything else.
We have some solutions for that at TKOH, the first is to be healthier and for that we own our own line of vitamins. We do this to stay healthy. It's not a sales pitch. Secondly we help our members with how to save money on current things you purchase everyday and how to save money in taxes. In addition, we also help with ways to increase your income over a period of time. Here we address all three parts of life and to our knowledge we are the only ones that do. Some cover one are but leave out the rest for you to figure out. To care for a person first you have to accept them for who and what they are. Accept them as family and hopefully they accept you as the same. Secondly as family you want the best for your family. You care if they have enough to eat or clothes to ware or if they have a place to live.
Here at The Kingdom of Hearts its all about the condition of each individuals heart. We care about each person and their needs in body and physical needs, soul, which deals with the mind and the spirit which is who we really are. We all hear, see and speak from the condition of our hearts or our spirits.
Now here is the choice, you can either walk alone in life or walk with people who do care about you. The choice is yours. In walking together it does bring healing in all aspects of our lives, because of love. If you think about it, that's what life is all about. Love! It works. Love is also working together. Because of love there are no lone rangers, because that is not love. Think about it and let us know.
