DEBT free IS THE WAY TO BE.Your prelude prelude (prā`l  d), musical composition of no universal style, usually for the keyboard. It was originally used to precede a ceremony and later a second, often larger piece. to financial freedom
WHEN SUZETTE SCARBOROUGH GRADUATED FROM Cornell University Cornell University, mainly at Ithaca, N.Y.; with land-grant, state, and private support; coeducational; chartered 1865, opened 1868. It was named for Ezra Cornell, who donated $500,000 and a tract of land. With the help of state senator Andrew D. in 1989, she had 19 different credit cards but was only $5,000 in debt. Immediately upon graduation Graduation is the action of receiving or conferring an academic degree or the associated ceremony. The date of event is often called degree day. The event itself is also called commencement, convocation or invocation. , she landed a great job with Coopers & Lybrand, in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , as a human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. professional and was living the life, or so she thought. She would frequently jet across the country with her sorority sorority: see fraternity. sisters to various conventions. Developing a taste for the finer things in life, she began to purchase Liz Claiborne This article is about the corporation Liz Claiborne Inc. For the fashion designer who founded the company, see Liz Claiborne (fashion designer). Liz Claiborne Inc. suits and Coach bags from Lord & Taylor. She caught all of the Broadway shows, and would travel to different cities just to see Phyllis Hyman Phyllis Hyman (July 6, 1949 - June 30, 1995) was a soul singer, model and actress. Overview She began her career as a silky-voiced singer influenced by jazz, and gradually moved towards heavily produced urban contemporary ballads. sing. Her credit card debt Credit card debt is an example of unsecured consumer debt, accessed through ISO 7810 plastic credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. was rising steadily. "I had the mind-set that I didn't have to wait for what I wanted. I could have it now," recalls Scarborough, 33, who resides in Brooklyn, New York. "By 1997, I was $32,000 in debt, including the $10,000 balance on my GEO (Geostationary Earth Orbit) A communications satellite in orbit 22,282 miles above the equator. At this orbit, it travels at the same speed as the earth's rotation, thus appearing stationary. Prism. I was making all of this money, but it was going to all of these banks." Scarborough is not alone. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a Federal Reserve report for May 2000, total consumer debt--mortgages were not factored in--hit $1.45 trillion, up almost 10% from a year ago. The same source reports that credit card debt was $626 million in May 2000, up 8.9% over the previous month. According to Myvesta.org (formerly Debt Counselors of America), an online credit-counseling service (www .myvesta.org), for every dollar the American family American Family is a photographic artwork exhibition by Renée Cox. See also
Determined not to remain a part of these statistics, Scarborough cut up her charge cards and began to track her balances, including how much she was paying off and how much she was accumulating. She read all of the finance articles she could get her hands on, started attending seminars, and began paying down her debt. By 1999, she owed $25,000. Later that year, she received a $26,500 severance package A severance package is pay and benefits an employee receives when they leave employment at a company. In addition to the employee's remaining regular pay, it may include some of the following:
For many Americans, being debt free may seem like a pipe dream. But it is possible to live a debt-free life. Just know how to recognize the types of debt. In her book Debt-Proof Living: The Complete Guide to Living Financially Free (Broadman & Holman Publishers, $14.99), Mary Hunt Mary Hunt (1830-1906) became one of the most powerful women in the United States temperance movement promoting Prohibition of alcohol. As Superintendent of the Women’s Christian Temperance Union’s Department of Scientific Temperance Instruction she worked from the grass cites the following "debt traps": credit card accounts, monthly installment plans, overdraft A check that is drawn on an account containing less money than the amount stated on the check. The term overdraft is also used in reference to the condition that exists when vouchers protection plans, past taxes, student loans, medical and dental bills, and personal loans. "People often find themselves getting into secured debt, such as mortgage and car loans, which they can sell to get out of debt," says Hunt. "But the dangerous types are unsecured debts Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. such as credit cards and signature loans." According to Michael Kidwell, co-founder of Myvesta.org, consumers have to recognize the warning signs of debt. Those clues may include always having to use credit cards when you make a purchase; only being able to make the minimum payment on cards; and going from using one credit card to using two, three, four, and then five, and never paying off the balances. In this article we will focus on the elementary methods you can use to get out of debt. In their book Get Out of Debt: Smart Solutions to Your Money Problems (Myvesta.org, $19.95), authors Kidwell and Steve Rhode, who co-founded Myvesta.org with Kidwell, offer consumers five simple ways to get out of debt: (1) stop incurring debt; (2) track your cash; (3) plan for the future; (4) don't expect instant miracles; and (5) seek professional help. We look at each of these and show you how you can apply them to your financial plan. * Stop incurring debt. This keeps you from going further into debt. "Going into debt rarely happens overnight. It usually creeps creeps see osteomalacia. up over a period of time," says Kidwell. "It starts out innocently with one credit card. Then a large home mortgage, vacations, and student loans. Before we know it, we are living from month-to-month and paycheck-to-paycheck" Tony and Triscilla Weaver of Stone Mountain, Georgia Stone Mountain is a city in DeKalb County and Gwinnett County, Georgia, United States. The population was 7,145 at the 2000 census. Geography The town is named for Stone Mountain, the largest exposed granite dome in North America. , know the feeling of living from paycheck to paycheck. Both were raised in single-parent, female-led households where money was always an issue and being debt free was a fantasy. "It showed us both things that we knew we would not want to go through," says Triscilla, 33. "We decided, early on in planning our future together, that we would be debt free." When the couple married in 1986, their debt consisted of a new $60,000 home, two car loans (Triscilla's monthly payment was $300 and Tony's, $350), and six credit cards between them that included Zales Jewelers, Kay's Jewelers, Goodyear, J.C. Penney, and two separate Rich's Department Store cards. Although Triscilla's charge cards did not carry any balances, Tony's cards, combined, carried a balance of several hundred dollars. "We sat down with our bills and made a budget. At that time, Tony was making nearly $30,000 per year and I was making less than $15,000," recalls Triscilla. "We decided to pay off all of his credit cards first, and that left us with the two car notes and our house note. It was an uncomfortable feeling having to pay two car notes at the same time, and we said that after that, we would never do it again." Over the past 14 years, Tony, 37, and Triscilla have alternated getting new cars. She now drives a 1992 Toyota Camry The Toyota Camry is a mid-size sedan assembled by Toyota in Georgetown, Kentucky; Altona, Victoria, Guangzhou, China and the original factory in Toyota City, Japan. In some markets, the top range Camry models are seen as executive cars. that was paid off in 1995. Tony's 1996 Ford Explorer
The Ford Explorer is a mid-size sport utility vehicle sold in North America and built by the Ford Motor Company since 1990. was paid off this September. During their marriage, they have remained virtually debt free. Their yearly income has more than doubled. As a route manager for the Atlanta Journal and Constitution, where he has been employed for 18 years, his salary is $55,000. Triscilla makes $55,000 as the assistant principal of Stephenson Middle School in Stone Mountain. * Track your cash. You should be able to identify your spending pattern in order to achieve financial success. Budgeting monthly and tracking your debts are ways to track your cash and expenses. This step is key to becoming debt free. Just ask the Weavers. They make note of what they spend and find ways of cutting costs wherever possible. Although they now live in a $275,000 home in the exclusive Southland south·land or South·land n. A region in the south of a country or an area. south  land·er n.Noun 1. subdivision and their neighbors are doctors, lawyers, and executives who drive shiny Mercedeses, Lexuses, and Jaguars, the Weavers live on a strict budget. Because they do, they can put all of their extra money into savings and investments. "We have always lived below our means and do not try to compete with others," states Triscilla. "We don't have the nicest car or biggest house because we focus on what is comfortable and meets the needs of our family." Amazingly, the Weavers have been able to remain practically debt free even though Triscilla has been attending school over the past 13 years. Most people use student loans as an excuse for being in debt. But the Weavers consider the investment as another bill that requires planning. Since their marriage, Triscilla has worked full-time while pursuing her bachelor of science Noun 1. Bachelor of Science - a bachelor's degree in science BS, SB bachelor's degree, baccalaureate - an academic degree conferred on someone who has successfully completed undergraduate studies and master's degrees master's degree n. An academic degree conferred by a college or university upon those who complete at least one year of prescribed study beyond the bachelor's degree. Noun 1. in middle-childhood education. She is now working on her doctorate, which she will complete in 2001. "We've spent $45,000 of our own money already. I have never gotten a student loan. We set the criteria that I would only take classes that we would be able to pay for," says Triscilla. "We would save the money for three months prior to the semester se·mes·ter n. One of two divisions of 15 to 18 weeks each of an academic year. [German, from Latin (cursus) s . My education has been a part of our monthly budget for the past 13 years." * Plan for the future. Before you can achieve financial success, you must have clearly defined goals. When individuals are in debt, they have no financial security, no savings, and usually do not invest in 401(k) plans. "Being in debt prevents a [financially secure] future. You are transferring your wealth to the creditor," says Hunt. "Being debt free relieves stress, and that plays a major role in your lifestyle," says Tony. "Since we are debt free, it allows us to save a great deal and to invest in our 6-year-old son T.J.'s future and our retirement." To show individuals how to stay out of debt, Ric Edelman, a financial planner Financial Planner A qualified investment professional who assists individuals and corporations meet their long-term financial objectives by analyzing the client's status and setting a program to achieve these goals. and the chairman of Edelman Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , teaches a seminar called "Square One" that shows consumers how to get out of debt. "The first thing we do is teach consumers to examine their spending habits. Too often people have no idea where their money goes," says Edelman, who is the author of The Truth About Money (Harper Resources, $19.95). "We then show them how to reduce unnecessary spending and how to anticipate future spending. This allows us to focus on income and existing savings, and allows us to set up a plan to eliminate the existing debt." * Don't expect instant miracles. You did not get into debt overnight and will not get out overnight. In a telephone survey it conducted in 1999, Myvesta.org found that consumers have an average of three cards with $1,751 in total credit card debt. If they make the minimum payment on that debt, it will take 28.6 years to pay off and will cost $4,172 in interest (calculated on an interest rate of 17.99%). Merely one late fee of $29 will add an additional 21 months and $350 in interest to the debt. "For people carrying a balance, if you have the cash, pay it off. If not, just try to become more aggressive in paying off your debt," says Kidwell. "Our Debt Eliminator Report is excellent and we also have an online calculator calculator or calculating machine, device for performing numerical computations; it may be mechanical, electromechanical, or electronic. The electronic computer is also a calculator but performs other functions as well. ." To assist consumers in paying off their debts easily, Myvesta.org (www.myvesta.org) a custom Debt Eliminator Report for about $25. It provides a step-by-step plan to help accelerate the rate at which debt may be paid off. "We specialize spe·cial·ize v. 1. To limit one's profession to a particular specialty or subject area for study, research, or treatment. 2. To adapt to a particular function or environment. in helping people who are really in debt," says Kidwell. "Every person in debt is suffering from some type of depression. Debt is one of the leading causes of divorce, lack of sleep, and poor work performance. It is truly one of the deep dark secrets that people have. It robs them of their self-worth and keeps them from achieving dreams." * Seek professional help. Find someone who is knowledgeable in financial matters and ask him or her to assist you in achieving the financial freedom they enjoy. You may not know the best way to pay off your debt or lack the motivation to do so. That's where the professionals come in. Debt-counseling organizations such as Consumer Credit Counseling Credit counseling (known in the United Kingdom as debt counselling) is a process offering education to consumers about how to avoid incurring debts that cannot be repaid. This process is actually more debt counseling than a function of credit education. Services offer free services (O.Eng. Law) such feudal services as were not unbecoming the character of a soldier or a freemen to perform; as, to serve under his lord in war, to pay a sum of money, etc. See also: Free that include showing you how to create a budget, helping you to set up a payment plan with creditors, and negotiating lower rates on credit cards. But before you contact anyone else, though, order your credit report to see where you stand. The three main agencies are Experian (www.experian .com) at 888-397-3742, Equifax (www.equifax.com) at 800-685-1111, and Trans Union Corp. (www.transunion.com) at 800-888-4213. Books and newsletters are helpful as well. Hunt, who has been publishing the monthly newsletter Cheapskate cheap·skate n. Slang A stingy person; a miser. cheapskate Noun Informal a miserly person Noun 1. Monthly (www.cheapskatemonthly.com) for nine years, has seen people come out of debt only to go right back in. She focuses on teaching people how to remain debt free. "You should live in a such a way that you are constantly prepared for the unexpected, like getting the car fixed and buying a new refrigerator. To me, that is the essence of debt-proof living." Scarborough, who is married to Kenneth and has a 2-year-old daughter named Desiree, is proud of her decision to change her spending habits. "It was a joy to become debt free. I invest in my 401(k), am working on putting money in my savings, and have goals in terms of buying a home," she contends. "But I was also fearful at first because I wondered if I could remain debt free for the rest of my life. It was kind of like being an addict Any individual who habitually uses any narcotic drug so as to endanger the public morals, health, safety, or welfare, or who is so drawn to the use of such narcotic drugs as to have lost the power of self-control with reference to his or her drug use. . That was 14 years of being in debt. Through spiritual growth, I came to realize that we have a responsibility to ourselves and family members to be in positive financial situations. Now, I am mindful mind·ful adj. Attentive; heedful: always mindful of family responsibilities. See Synonyms at careful. mind and careful of everything I spend." How Much Do I Owe? In order to get out of debt, you need to know how much you owe. Making a list will give you a clear picture of your personal financial situation, allowing you to begin the process of managing your finances in a way that serves your needs. This is an important step to living debt free.
Interest Monthly #Remaining
Debt Owed Rate Balance Payments Payments
Car 15% $6,400 $320.00 20
College Loan 1 8% $9.200 $230.00 40
College Loan 2 8% $5,290 $196.00 27
Mom 0% $2.500 $50.00 24
Ace Hardware 18% $420 $70.00 6
Levitz Furniture 17% $150 $75.00 2
Circuit City 19.5% $1,875 $125.00 15
TOTAL -- $25,835 $1,066.00 --
* It's helpful to know the exact payoff dates of loans. However, it's more difficult to calculate the payoff date for credit card debts because minimum monthly payments go down as the amount of debt is reduced. In addition, interest varies because it's calculated based on the balance. Reprinted with permission of the publisher, from Life Without Debt (c) 1995 Bob Hammond. Published by Career Press, Franklin Lakes, N.J. All rights reserved. Debt-Free Key: 10 Steps For Coping With High Credit Card Bills 1 Develop a plan of action. 2 List all of your assets and resources. Include savings accounts Savings Account A deposit account intended for funds that are expected to stay in for the short term. A savings account offers lower returns than the market rates. Notes: , money market funds, stocks and bonds, 401(k)s, and home equity credit lines. 3 Know what you owe. Rank your credit card debts and loans from highest to lowest by the annual percentage rate of interest. 4 Compare high-cost debts with lower-cost ones. Concentrate on paying off the high-cost debts first. 5 Switch to credit cards with lower interest rates. 6 Compare fees. 7 Know when your cards' grace periods begin and end. 8 Watch those minimum monthly payments. 9 Pay off some debts with assets such as the money in a savings account. 10 Make credit work for you. Consider taking a low-interest loan from a credit union, borrowing against your 401(k), or getting a home equity loan to pay off higher interest rates. ADAPTED FROM Life Without Debt (C) 1995 BOB HAMMOND. PUBLISHED BY CAREER PRESS, FRANKLIN LAKES, N.J. Websites Offering Credit Counseling American Consumer Credit Counseling www.consumercredit.com The Center for Debt Management www.Center4DebtManagement.com Cheapskate Monthly www.cheapskatemonthly.com Consumer Credit Counseling Service www.debthelpnow.com 1st Consumer Credit Counseling www.payonlyone.com Alliance Genus Credit Management www.nccs.org Myvesta.org www.myvesta.org National Foundation for Credit www.nfcc.org Counseling |
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