Money Quiz: Answers to Keep You Debt Free

Starting out on the right financial foot is a great way to make headway into a solvent economic future.  Take the following quiz to see if you are on the right track to financial success.

1. Do you have a budget set up?
Creating a monthly budget and sticking to it is a great way to track your spending.  Keeping a monthly tally of your expenditures will outline where you spend and where you can trim your spending.

Track your spending including all monthly expenses such as mortgage, electrical bill, insurance, and other incidentals such as morning coffee and other special treats.  Keeping systematic record of expenses and budgeting your income, will prevent overspending and collapse into debt.

2. Do you use credit cards  because you have no cash?
Having a credit card for emergency purposes and major necessities is a great way to get out of a bind but for daily regular expenses try using cash.  Using cash prevents over spending and cuts down on discretionary spending such as dining out, entertainment or other unnecessary expenses.

Using a credit card can cause card balances to be ‘run up’ unnecessarily.  Their convenience is proportional to the card holders overspending.  Avoid over spending, cut up the cards and pay with cash.

3. Do you pay off the card with the highest rate first?
Reduce your monthly payments by paying off the card with the greatest interest rate.  Once it is paid off, close it out and cut up the card.  Continue to do this with the card with the next highest monthly interest until you have only one card with a favorable rate.

Also, pay down cards to 50 percent of the card limit.  Balances higher than 50 percent of the limit will reduce your credit score.

4. Are you considering taking on a second job?
Part time work for short term gain may provide some respite to your debt woes.  Taking on a second job to pay off outstanding bills will provide a sense of control and will increase your income.

Getting out of debt and staying out of debt is as simple as spending less than you make.  Spending less can be done with discipline and control.  Create a budget and stick to it and you will be on track to stay out of debt.

Three Keys To Reducing Credit Card Debt

There are plenty of new and improved services that are available to help you reduce and even completely eliminate credit card debt. But what all of it really boils down to initially is that getting out from under credit card debt requires a debtor to turn three simple keys to start the ball rolling.

Here are 3 keys to reducing your credit card debt, no matter how deep you are in debt:

Track and Budget
If you are just now getting on track with managing your personal finances, the only place to start is with a budget and expense tracking sheet. For at least one month, you need to keep a notebook and pen with you at all times to record each and every penny you spend. Whether you are buying a coffee at the corner store or a cart full of groceries, you need to be writing it all down for 30 days. At the end of the month, sit down with all of your monthly bills and financial obligations, plenty of room, a calculator, a notebook, and a ledger tablet.

Start by categorizing each expense you put out using terms such as entertainment, food, child care, and miscellaneous. Go back down through the list and total each category. After recovering from the shock of where your money is going in thirty days, you’ll next need to write down your income for the month and tally your bills for the month. If there are more expenses than income, head back to the expense tracking sheet and see where you can start making cuts. Keep cutting until you have enough extra cash leftover after paying all of the bills. With a budget, you will know how much cash you have to spend each month on entertainment, groceries, clothing, etc, lessening the occurrence of overspending.

Prioritize Your Finances
Along with establishing a budget, you also need to start setting financial goals, both short and long-term. If you have a lot of credit card debt to tackle, you may consider getting a temporary second job and devote those paychecks only to the credit card bills. Sketch out a financial plan that can add a time line to the amount of time it will take to pay off debts in full. By sticking to a budget and following strict guidelines that you yourself creates, you should be able to implement a financial plan that works for your lifestyle and eventually will expand to include savings plans and goals.

The Drive To Be Debt Free
Like with many bad habits, you have to want to quit the bad and replace with the good. Overspending on credit is a definite bad habit that leads to debt issues and poor financial planning. You have to want to be debt-free and willing to make the changes necessary to get back on financial track. You have to be committed to stick it out with a budget plan, even when the going gets stuff. Seeing the big picture is what you need to be looking at when it comes to personal financial management and the ability to live a debt free, financially stable life.

RAM Financial Services Review

RAM Financial Services based in Phoenix, AZ is a relatively new company that provides various resources for your financial needs. Their goal is to provide a one-stop resource for all financial needs from debt help, credit solutions, job placement, auto financing and more. If you have a financial need that RAM does not provide solutions for, they offer a Partner Provider Network to help you get in contact with handpicked participants that will find the solution you seek.

Here are some quick facts about RAM Financial Service (RFS):

Company Founded:- 7/22/2008

Years In Business:- Less than one year

Number of Employees:- Unknown

BBB Rating:- B-

BBB Complaints:- 0 complaints

About the Company:

The Better Business Bureau describes the type of business as “debt settlement, credit-debt consolidation services, financial services” and currently gives RFS a B- rating. The BBB tracks complaints in a three year period and presently has 0 complaints reported against this company. RFS is a member of the Greater Phoenix Chamber of Commerce as well as the International Association of Professional Debt Arbitrators.

The Program:

Where most companies within the debt relief industry generally pick one area of “expertise” to focus on, RFS recognizes that each person has a unique situation which requires unique solutions.

• Responsible Solutions- This program is designed with the needs of the client in mind. RFS states they have the unique ability to blend programs to meet the needs of individual clients.

• D2P Empowerment Plan- Designed to solve your current debt problem and empower clients how to solve and avoid financial problems in the future. The D2P plan provides ongoing education and support to provide clients with the tools to live a lifetime of financial stability.

This company does provide debt settlement services in addition to the other programs listed. They do not have a hard and fast rule for minimum debt requirements however they use $10,000 of unsecured debt as a guideline. Unlike most debt settlement companies RAM Financial Services implements a credit repair program in tandem with debt settlement services to help consumers offset the negative results negotiating debt can have on your credit history. They offer a 100% Money Back Guarantee (see terms and conditions).

Website Experience:

RAM Financial Services has a website that is modern and visually appealing. Beyond company information the website includes a free 12.5 Steps To Get Out of Debt ebook and offers visitors the opportunity to ask questions and engage in live online chat with a representative. The home page has sections offering information on loan modification, news and media as well as tools and resources.

Overall, the website itself provides a lot of information, however the type of information provided leaves me with more questions than answers. Besides standard debt settlement services what does this company really do for its clients and more importantly (we are dealing with people with financial problems) how much do any or all of these services cost? Fortunately for individuals who have questions the website provides numerous ways to contact the company for more information. In addition to chatting live, you can call, email directly or use a standard email form to submit questions.

I have been unable to find other references online that could be used to form an opinion of this company, most likely due to the fact that RFS has yet to reach the one year anniversary of their original start date.  Anyone who has done business with RAM Financial Services is encouraged to leave a comment sharing their experience.

Editor’s Note:

This story is of someone who was treated poorly by RAM.

Helping Family Change their Spending Habits

In many cases, a debt-free lifestyle is prompted by one person. Generally it is not because other family members no not want to find debt freedom, but because of time constraints and the priorities of people. It can be very discouraging to have one person do all of the work only to find that the rest of the family is not participating.

While there is no sure-fire way to physically change any other person’s habits effectively, there are some things you can do to help expedite the process and be more helpful in working with family members to get on the same debt-free page. Here are some tips for helping convert the spenders into savers:
Read more