DebtFreeIQ.com: debt reduction guide to freedom

Ever since World War I and the Great Depression that followed, the American government has kept track of its citizens spending and saving habits. The results did not become frightening until the 1960‘s, when, all of the sudden, spending started to outpace savings. Debt reduction did not seem to be massive problem yet, but today tells another story. All it takes is one glance at our government’s massive deficit to recognize that Americans are addicted to spending, even if they don’t have the money to do so.

Over 50 percent of American society spend more than they earn or save. This translates into too many Americans waiting for each payday and still winding up short when they go to pay the bills. They may have cars that cost more than a full college education, but if for some reason they didn’t have income for a certain amount of time, they’d go downhill very quickly. It doesn‘t matter what tax bracket you‘re in; you probably have some form of debt, and eliminating that debt is always going to be a good thing. Once you’ve made the decision to reduce whatever debt you do have, you’ve chosen to take control of your life and financial health.

It really isn’t just financial health, though; debt can impact your body. When debt and the worries that accompany it start to recede, your blood pressure and stress levels plummet as well. Why run your body further into the ground? All it takes is a commitment to change.

How to alter bad behavior

When someone has made keeping up with the Joneses part of their lifestyle, debt reduction can seem least appealing. People like to think about what spending money means, but not what paying it back will require. The bottom line is that you pay for every dollar you spend, at one moment or another. Don’t let that moment belong to your children, passed on to them by your passing.

All it takes is the decision to make a change, and that decision can come today. Look at your debt in a vacuum, recognize how it will impact you, and forget what people might think if you start living a little more conservatively. It may not be an easy process, and it may seem daunting, but it‘ll leave you happier and healthier in the long term. By eliminating the debts you owe, you’ll no longer have to make monthly payments, eventually giving you more cash to spend. A huge weight will be lifted off your shoulders. Why not give it a try?

Here are some more debt reduction resources...

Want to Be Debt-Free? Change the Way You Spend
You could try to pay your way out of debt, but if you don't change certain spending habits, you'll find it close to impossible to become debt-free. One of the first things you have to do is tally up your debt and come to grips with what you owe. Learn four other <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/tp/debt-habits-to-change.htm">habits to change before you try to get out of debt.</a><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/10/want-to-be-debt-free-change-the-way-you-spend.htm">Want to Be Debt-Free? Change the Way You Spend</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Wednesday, March 10th, 2010 at 11:30:02.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/10/want-to-be-debt-free-change-the-way-you-spend.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/10/want-to-be-debt-free-change-the-way-you-spend.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/03/10/want-to-be-debt-free-change-the-way-you-spend.htm&zItl=Want to Be Debt-Free? Change the Way You Spend">Email this</a>
The Fed Proposes a Rules to Limit Credit Card Fees
The Federal Reserve has <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.federalreserve.gov/newsevents/press/bcreg/20100303a.htm">proposed a rule</a> that would limit penalty credit card fees - those fees that are imposed when you default on your credit card, e.g. miss a payment. Right now, credit card companies are charging the maximum penalty fee to the majority of their customers. If it's passed by Congress, the new rule could end that practice. The rule would stop credit card companies from charing fees that are more than the violation. For example, if you go over your limit by $5, your maximum over-the-limit fee would be $5. The rule would stop inactivity fees and prevent cardholders from being charged multiple times for one violation. You can let the Federal Reserve know what you think about the proposed rule by <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm">commenting at their website</a>. Make sure you leave a comment for R-1584.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/08/the-fed-proposes-a-rules-to-limit-credit-card-fees.htm">The Fed Proposes a Rules to Limit Credit Card Fees</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Monday, March 8th, 2010 at 02:10:52.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/08/the-fed-proposes-a-rules-to-limit-credit-card-fees.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/08/the-fed-proposes-a-rules-to-limit-credit-card-fees.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/03/08/the-fed-proposes-a-rules-to-limit-credit-card-fees.htm&zItl=The Fed Proposes a Rules to Limit Credit Card Fees">Email this</a>
Watch Out for Unauthorized Charges From iTunes
Note: This news story came out last year, but many readers are still facing problems with fraudulent charges from iTunes. A <a href="http://clk.about.com/?zi=1/1hc&zu=http://www2.myfoxny.com/dpp/your_money/consumer/090518_Scammers_iTunes_Bank_Accounts">MyFox New York</a> story warns about fraudulent credit card and check card charges that appear to be from iTunes. The first signs of the fraud include charges or pending authorizations from a APL*ITUNES business for $1.00 which might seem to be accurate or an email for gift card receipts that were purchased with your account. The fraud is happening to a wide-variety of people who may or may not have an iTunes account. From the news story: <blockquote> The high-tech scam has claimed victims from New York to California. At the heart of it all is Apple's wildly popular iTunes. Victims say it starts with an unexpected e-mail for purchases they never made. That's how Rachel Katz from Manhattan found out, "I got two emails thanking me for my purchase." But by the time victims get the e-mail receipt it's usually too late. The receipts appear to be legitimate, and come from Apple, generated by the user's iTunes account. The receipts show purchases for iTunes electronic gift certificates and charges that hit checking accounts, credit cards or PayPal depending on what the user has linked to his or her iTunes account. </blockquote> Some of the thieves wait for the $1.00 charge to complete before hitting the account with even higher charges. Sending an initial small charge through first allows the thief to determine whether the account is legitimate. Many victims of the fraud are having trouble fixing the situation. Neither the banks nor Paypal nor Apple accept ownership. Meanwhile, victims are left without hundreds, even thousands of dollars. Brett Larson with MyFox recommends deleting your credit card information from iTunes. Instead, he suggests you fund your account with an iTunes gift card. The cards can be purchased from many retailers like Wal-Mart, Target, and Best Buy. Or, you can make iTunes purchases with single-use credit card number available from your credit card company. I just deleted my credit card information from iTunes by going to Store --> View My Account. I clicked on Edit Payment information and next to "Credit Card" I selected the radio button next to "None." If you notice an authorization or charges from Apl*itunes, contact your bank immediately. Here are some <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/privacyconcerns/qt/creditcardfraud.htm">Tips to Avoid Credit Card Scams</a> and information about <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/usingcreditcards/qt/billingerror.htm">disputing inaccurate credit card charges</a>. via <a href="http://clk.about.com/?zi=1/1hc&zu=http://consumerist.com/5260294/watch-out-for-fraudulent-itunes-purchases-whether-you-have-an-itunes-account-or-not">Consumerist</a><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/06/watch-out-for-unauthorized-charges-from-itunes.htm">Watch Out for Unauthorized Charges From iTunes</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Saturday, March 6th, 2010 at 02:05:33.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/06/watch-out-for-unauthorized-charges-from-itunes.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/06/watch-out-for-unauthorized-charges-from-itunes.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/03/06/watch-out-for-unauthorized-charges-from-itunes.htm&zItl=Watch Out for Unauthorized Charges From iTunes">Email this</a>
Are Some Creditors Trying to Hide the True Cost of Credit?
Credit card issuers are now required to include credit card repayment time and cost on the front of your billing statement, but they may be trying to skirt that new requirement. Credit card issuers are now required to give a minimum payment warning letting you know just how much you'll end up paying in interest if you make the minimum payment on your credit card. They also have to clearly state late payment penalties including late fees and penalty rates. Both these disclosures are supposed to be printed on the front of your billing statement. The rule applies to printed statements and if you check your billing statement online, you might not see the warnings unless you download the PDF version of your statement. Could this be the real reason why some private-label credit card issuers started charging consumers a dollar to receive paper statements? <a href="http://clk.about.com/?zi=1/1hc&zu=http://www.creditcards.com/credit-card-news/dollar-bill-buck-credit-card-fee-paper-monthly-statements-1273.php?aid=52aae854">CreditCards.com</a> reports that back in December of 2009, retailers who issue through Alliance Data Systems gave cardholders the option to get their statements online or pay $1 for paper statements. Of course, there'll be some customers to pay the fee because they can't or won't check their accounts online. The ones who opt for online statements could miss out on vital information about how much they're paying for credit. <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/04/are-some-creditors-trying-to-hide-the-true-cost-of-credit.htm">Are Some Creditors Trying to Hide the True Cost of Credit?</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Thursday, March 4th, 2010 at 02:42:48.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/04/are-some-creditors-trying-to-hide-the-true-cost-of-credit.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/04/are-some-creditors-trying-to-hide-the-true-cost-of-credit.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/03/04/are-some-creditors-trying-to-hide-the-true-cost-of-credit.htm&zItl=Are Some Creditors Trying to Hide the True Cost of Credit?">Email this</a>
Beware Credit Card Skimming
Credit card skimming is a type of credit card theft that allows thieves to steal your credit card information without stealing your credit card. After being hidden in ATMs and other credit card machines, credit card skimmers collect your data in what would have been a legitimate transaction. Waiters, retail clerks, and other customer service representatives can hold skimmers in their hands and swipe when you're not paying attention. Learn more about <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/privacyconcerns/a/credit-card-skimming.htm">credit card skimming</a>, how to recognize a skimmer, and how to avoid the theft. Related Posts: <ul> <li><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/usingcreditcards/a/stolen-credit-card.htm">Your Liability for Stolen Credit Card Charges</a></li> <li><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/privacyconcerns/p/credit-card-telephone-scams.htm">Credit Card Telephone Scams</a></li> <li><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/privacyconcerns/tp/prevent-fight-identity-theft.htm">10 Ways to Detect, Prevent, and Fight Identity Theft</a></li> </ul><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/03/beware-credit-card-skimming.htm">Beware Credit Card Skimming</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Wednesday, March 3rd, 2010 at 00:18:06.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/03/beware-credit-card-skimming.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/03/03/beware-credit-card-skimming.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/03/03/beware-credit-card-skimming.htm&zItl=Beware Credit Card Skimming">Email this</a>
5 Ways to Spend Your Tax Refund
It's tax season and for many taxpayers that means a tax refund is due. If you know you're getting a refund, you've probably already started thinking about how you're going to spend it. Buying consumer goods would stimulate the economy, but paying off some credit card debt would stimulate your get-out-of-debt plan. See <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/tp/spend-tax-rebate-refund.htm">5 Ways to Spend Your Tax Refund</a> for some ideas on what you can do with this year's income tax refund.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/27/5-ways-to-spend-your-tax-refund.htm">5 Ways to Spend Your Tax Refund</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Saturday, February 27th, 2010 at 00:18:53.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/27/5-ways-to-spend-your-tax-refund.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/27/5-ways-to-spend-your-tax-refund.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/02/27/5-ways-to-spend-your-tax-refund.htm&zItl=5 Ways to Spend Your Tax Refund">Email this</a>
How to Share a Credit Card
My very first credit card was a joint account with my mom. It worked out perfectly for me. I'd make charges and she'd pay the bill. We never talked about it, which we should have, and eventually she told me not to use the card. Guess it would have been nice if I'd have contributed to the payments. When you share a credit card with someone else, you can't take for granted that one or the other will pay the bill, because they might not. You have to discuss everything you'd naturally make a decision about like spending limits and payment habits. You have to think about what happens with the credit card if the two of you sever ties. Read <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/usingcreditcards/qt/jointcreditcard.htm">Managing a Joint Credit Card</a> for details on how to share a credit card with someone else. <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/toughcreditissues/a/prosconsjointcc.htm">Pros and Cons of Joint Credit Card Accounts</a> can help you make the decision to get a credit card with someone else.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/25/how-to-share-a-credit-card.htm">How to Share a Credit Card</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Thursday, February 25th, 2010 at 00:31:51.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/25/how-to-share-a-credit-card.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/25/how-to-share-a-credit-card.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/02/25/how-to-share-a-credit-card.htm&zItl=How to Share a Credit Card">Email this</a>
The CARD Act Doesn't Cover All the Bases
The new Credit CARD Act went into effect on Monday, and while it stops a lot of bullying credit card companies have gotten away with for years, it doesn't cover everything. Credit card issuers can't raise your interest rate without sending you a 45-day advance notice, but they can impose new fees, like an inactivity fee if you don't use your credit card for a certain period of time. They can also raise your rate if you have a variable interest rate, that is, a rate that moves when the prime rate moves. There is no Federal cap on the interest rate credit card issuers can charge and in some states, competing credit card companies are the only thing standing in the way of astronomical interest rates. Credit card issuers have to warn you if they change your credit card terms, so pay attention to mail that comes from your credit card issuer. Whether it's included with your billing statement or in a separate envelope, read it or you may miss the opportunity to reject those changes.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/24/the-card-act-doesnt-cover-all-the-bases.htm">The CARD Act Doesn't Cover All the Bases</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Wednesday, February 24th, 2010 at 02:25:16.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/24/the-card-act-doesnt-cover-all-the-bases.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/24/the-card-act-doesnt-cover-all-the-bases.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/02/24/the-card-act-doesnt-cover-all-the-bases.htm&zItl=The CARD Act Doesn't Cover All the Bases">Email this</a>
Get Ready for All Sort of New Fees
In just a few days, credit card companies will have to abide by a string of new laws that restrict them from their old predatory habits. But that doesn't mean they won't pull some new rabbits out of their hats in hopes of having you pay more. Yesterday, CNN Money Blogger, Ismat Sarah Mangla, reported that <a href="http://clk.about.com/?zi=1/1hc&zu=http://moremoney.blogs.money.cnn.com/2010/02/17/the-onslaught-of-new-credit-card-fees-begins/">she'd received a notice from Citi</a> announcing a new annual fee on her credit. "Charge more, pay us the fee, or close your account" was the message they'd sent in her in a letter. For now, she's choosing the fee option in hopes that years of being a good customer will help her get the fee waived later on. Don't be surprised if the new fees keep coming. Credit card issuers are banned from raising your interest rate on things like isolated late payments and lower credit scores, but they can introduce new fees as long as they tell you in advance and give you a chance to reject the fee. Choose wisely - agreeing to an additional fee increases the cost of carrying a credit card, but rejecting the fee could mean you lose the credit card and a few credit score points in the process. The relationship with credit card issuers may be rocky for a few months as they get used to the new rules and as we get used to their response to the new rules. Be sure to read all your credit card inserts and open all your mail, even if it appears to be junk mail. Missing an announcement from your credit card issuer means you'll miss out on the chance to opt-in or opt-out of credit card changes. Get details on the <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/consumercreditlaws/tp/new-credit-card-rules.htm">new credit card rules</a>.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/18/get-ready-for-all-sort-of-new-fees.htm">Get Ready for All Sort of New Fees</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Thursday, February 18th, 2010 at 00:01:14.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/18/get-ready-for-all-sort-of-new-fees.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/18/get-ready-for-all-sort-of-new-fees.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/02/18/get-ready-for-all-sort-of-new-fees.htm&zItl=Get Ready for All Sort of New Fees">Email this</a>
Should You Pay Taxes By Credit Card?
It's tax season. Some people will get refunds and others will end up paying. No one wants to send money to the IRS, but it's the law - if you owe, you have to pay. If you don't have the cash to pay your tax bill, you might think about paying by credit card. It's a viable option and one you might end up taking. But, before you put the bill on your credit card make sure you know the alternatives and understand the risks. Read: <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/toughcreditissues/qt/taxescreditcard.htm">Pros and Cons of Paying Taxes By Credit Card</a> If you're due a refund, spend it wisely. <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/tp/spend-tax-rebate-refund.htm">Smart Ways to Spend a Tax Refund</a> has tips. Credit Card & Tax Articles: <ul> <li><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/toughcreditissues/f/taxesoninterest.htm">Is Credit Card Interest Tax-Deductible?</a></li> <li><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/toughcreditissues/f/is-credit-card-donation-tax-deductible.htm">Are Credit Card Donations Tax-Deductible?</a></li> <li><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/od/reducingdebt/a/cancelleddebt.htm">You May Owe Taxes on a Settled Debt</a></li> </ul><a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/17/using-your-credit-card-to-pay-taxes.htm">Should You Pay Taxes By Credit Card?</a> originally appeared on <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/">About.com Credit / Debt Management</a> on Wednesday, February 17th, 2010 at 08:00:21.<a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/17/using-your-credit-card-to-pay-taxes.htm">Permalink</a> | <a href="http://clk.about.com/?zi=1/1hc&zu=http://credit.about.com/b/2010/02/17/using-your-credit-card-to-pay-taxes.htm#gB3">Comment</a> | <a href="http://credit.about.com/gi/pages/shareurl.htm?PG=http://credit.about.com/b/2010/02/17/using-your-credit-card-to-pay-taxes.htm&zItl=Should You Pay Taxes By Credit Card?">Email this</a>