Debt Elimination Success Seminar
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Section 1
A Look at Debt
History of Debt
Credit Card History
Current State of Debt
How You Got Into Debt
Good Debt Bad Debt
Business vs. Personal Debt
Section 2 Dealing With Your Money
The Two Step Plan
Doing The Two-Step
Step One
Step Two
The Paths Out of Debt
1- Create a Debt Payment Plan
2- Neogtiate Better Rates & Terms
a.Consolidation Loans
b.Consumer Credit Counseling Services
3- Negotiate Lump-Sum Settlements
4- Bankruptcy
5- The Easy Way
6- Win $1,000,000
Living Debt-Free
Manage Your Money
Make More Money
Save Money
SameMoney-MoreFun
Stay Debt-Free
You as a Business
Section 3 Dealing With Your Creditors
Alerts/Scams
The Credit Industry
Credit Industry
The Fine Print
The Secondary Debt Market
The Debt Collection Process
Original Creditor
The Charge-Off
Collection Agency
Legal Problems
Dirty Creditor Tricks
Dealing with Debt Collectors
Dealing with Debt Collectors
Statute of Limitations
Cease and Desist Letter
Section 4
The Credit Report
The Credit Report
Credit Score
Credit Repair
Section 5
Dealing With Yourself
The Critical Factor
The Art of Prosperity
The End of Failure
Prosperity Coaching
Section 6
Kids and Money
Kids and Money
How to Pay for College
Section 7
Debt Information
Bookstore
Debt Facts
Radio Show
Resources
About Us
Privacy Policy
Site Map
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Leonard C. Wright, CPA/PFS, CFP, CLU, ChFC is a personal financial specialist at Strategic Financial Group, a Los Angeles-based financial planning firm, and he also is a member of CalCPA's personal financial planning committee.
- Go on a money diet. The first step to success is acknowledging financial issues weigh too much. Take a step back and cut back more than you need to at first. As time progresses, reward your successes by integrating some of the wants back into your lifestyle.
- Develop habits to succeed in debt management. Always evaluate what you actually need vs. what you want. The following strategies are designed as a constant reminder.
a. Take a step back and cut back more than you need to at first. As time progresses, reward your successes by integrating some of the wants back into your lifestyle. The interesting discovery that occurs is that many of the wants were not as important as once perceived.
b. Carry a “Red” Credit Card in your wallet. The “Red” signifies going into debt. Every time you use the card, negative thoughts will be triggered.
c. Carry the American Express card that has to be paid off at the end of the month in the event of emergencies.
d. Set aside a Saturday once per month and open, review, and log all of the bills in a program (i.e. Quicken). Use this as an opportunity to reinforce need vs. want. - Start to plan for bumps in the road. Be prepared for a natural disaster. Be prepared for a family disaster. Take control of your life by taking the steps necessary to succeed.
a. Have an emergency cash fund equal to at least three months expenses in the bank. Build three months to six months over time.
b. Make certain defensive strategies are in place. Do you have enough life insurance? Do you have adequate disability insurance? Have you talked with parents about long-term care insurance? Is your car insurance adequate? Have you evaluated the benefits of umbrella liability protection? Do you have the experts that can help you evaluate these issues? - Have a plan to protect your credit.
a. Identity theft is growing at an increasing rate.
b. Routinely monitor your credit reports. It is relatively inexpensive, and you may be amazed by what is on the report. - Exercise Divorce Sense. Protect yourself from nonsense.
a. As soon as there is a divorce proceeding, cancel all joint accounts.
b. Open accounts in your name only.
c. If you end up with joint debt that has been accorded to the ex-spouse, and cannot get it transferred to an individual account, follow up regularly to make certain that all payments are being made. Both parties share credit responsibilities despite what the divorce decree may stipulate. - Apply an approach of moderation. While it makes financial sense to delay saving money until high interest rate debts are paid off, rarely do consumers ever actually reduce the debt load. Create a discipline that achieves at least the following;
a. Funds the company 401k plan at least up to the match during the debt pay down period.
b. After the debt pay down period, which should last between two to five years, fund the maximum amount possible in the company 401k or other qualified plan.
c. Place a small amount each week in a separate savings account. Have the money go automatically if possible from the checking account. Put it in a bank or financial services firm that is hard to get to. Preferably with someone you will have to call to get the money. It will make you think twice whether you really need it or not.
d. Pay more than the minimum on the credit cards each month.
e. If the above are difficult to achieve, then go back to steps one and two and apply a pinch of seven over time.
f. When taking on good debt, evaluate if it is the right time to take on good debt, and make certain that there is adequate capitalization. For instance, if housing prices are at a peak, it may not be the optimal time to make that purchase. When going into a business, the beginning of a recession usually forces the business owner to take on too much debt. - Recipe for a raise during debt reduction.
a. 1/3 to debt.
b. 1/3 to savings.
c. 1/3 to increase your lifestyle. - Prepare a written plan and review the plan at the end of the year. Each plan should include:
a. Statement of income and expense.
b. Assets and liabilities.
c. Prepare three financial goals that you want to achieve three years from now. Each year review your progress.
d. Prepare three personal goals that you want to achieve three years from now. Each year review your progress. - Evaluate One Time Fixes and Key decisions
a. Mortgage consolidation loan.
b. Bankruptcy.
c. Credit walk away.
d. Buy a new home vs. add on.
e. Buy a new car vs. a well-maintained used car.
f. Take advantage of the tax laws. For instance, saving in a tax free account for college is like getting one year free. The quicker a decision is made, the better life will become. This step is a failure without success in steps 1-8. - Celebrate Life! There are many treasures to explore for only the cost of gas and a home made lunch. A National Park Pass is inexpensive. Most beaches are free or a few dollars for parking. The library is free. Many museums have a free Thursday, or Tuesday offered. Discover what there is to discover. If we can find many things to enjoy, our debt stress will be greatly reduced.