Snowball your way to financial freedom

Debt is like a plague that eats your hard earned money faster than you can earn it. You work for your bills and your bills take everything you work for. Soon it becomes a stressful vicious cycle that makes people bitter and angry. Your outlook becomes bleak; you see no happiness in your future.

For most, debt becomes so overwhelming that choices are made irrationally and impulsively. People begin to refinance bad consumer debt into their home equity which starts a never ending cycle of consumer debt-itis. Simply put a snowball effect that will overextend your resources well beyond your capabilities.

In fact more consumers start off with a 30 year mortgage and end up with a plan that extends out over 65 years or more. You see every time the refinance  is completed the amortization clock starts over. Your creditors have a plan to keep you in debt for as long as possible. I know this since I am in the mortgage lending business. Refinances are essential for many loan officers since that is our bread and butter. Many loan officers are unfortunate that client loyalty isn’t always key to their needs it’s the spur of the moment for many.

As you have seen when creditors stop lending the entire world feels the pain. Money makes the world go round and there is no denying it. You’ve heard the saying “Money Talks” or “Cash is King”, no one ever mentions that credit is Queen. Credit goes hand in hand with cash. Preferably credit is safer to use and easier to get your hands on if you know how. The biggest problem then lies with when to use and when not to use credit.

Our entire nation is build on debt, our Government has a National Deficit due to it’s spending habits. If anyone needs a bail out plan it’s our deficit. The commonality of our National Debt and the little guy/gal is that we too are in a deficit. Sure the proportions are much different but the fact of the matter is the same. If you don’t control your debt it will eat you alive.

We the people don’t have campaign contributions and tax payers to offset our spending. WE instead have a bankruptcy system that ruins our good name for over a decade, even two in some cases. Along with that we are banned from receiving good credit for years even if it was just a point in life that went unexpected. Our finances can very easily consume us if we are not careful.

This is where an plan of action, determination and some proprietary software comes into play. You see not everyone has the desire to fix their financial problems and those that do are usually upside down with their finances and can’t afford any type of assistance except from a governmental agency, or a charitable cause.

Developing a snowball effect on your bad debt is the fastest solution to put you into motion on a mission to eliminate debt from your life and have a certainty that your goal will be reached on a specific date. As the snowball rolls down the mountain it gains both mass and momentum; an unstoppable force if left unchallenged and unobstructed. Remember in the old Looney Tunes Cartoons where the snowball ran over Wiley E. Coyote?

The principle is the same, plan out your debt in a fashion that will execute a growing effect of debt reduction, interest reduction, and principle reduction in the shortest amount of time possible. The important factor is to remember is you’re building a momentum, staying in your budget is critical to your success.

You can’t reduce when you over extend your income, Why implement a plan when it will strap you. Instead you need a team of advisors who will keep you on track, maximize your momentum and provide you with a date of debt elimination. Once you have that established you will also need to have another date penciled in; your cash millionaire date. You see the whole idea behind credit interest reduction and debt management is to become debt free.

While you are in transition you need to also become financially independent, having the means and where withal to go from debt ridden, strapped, stressed to comfortable, self reliant, motivated, energized and happy to receive a paycheck; because now not only do you get to save more of it you actually can take a vacation or sick time and not have to worry that the sky is falling anymore.

Take the initiative to take control of your debt, plan to eliminate it once and for all. Gain control of your life and start enjoying life like you used to when you were younger and responsibility wasn’t a word in your vocabulary. Take charge of today for a better, brighter and more abundant future than you have ever thought possible. Learn to maximize and protect your wealth by applying these simple and effective methods into your life

• Investing in your online accounts with automatic bill pay Many people have tried to systematize a method for automating their investments and although it takes a human touch make the buy and sell calls in the stock market you can charge your investment accounts with your dollars automatically. Set up your account and then when you have all of......
• How to Land Investment Returns You Can Take to the Bank When it comes to investment and calculating returns many people still get it wrong. Whoever said that one plus one equals two was correct in theory; however when it comes to actuality this theory only holds true after you finish the equation. Remember when your math assignment turned into......
• How to obtain credit in a down market Yes you can obtain credit in a down market with the proper mindset, motivation, and knowledge. Where do you start especially if you need to acquire it fast and you don't have many resources. This is a quick guide to preparing for the individual or the corporate credit seeker. If......
• Recovering from bankruptcy isn't as difficult as you may think I hear this cry from many people worried about their financial circumstances after they have decided that bankruptcy is their only alternative when it comes to recovering from financial hardship. I'm not an attorney yet I work very closely with them in my real estate business. On many occasions bankruptcy......
• What to do after you become wealthy SO you've made it, that "pie in the sky, pipe dream" your friends always said would never amount to anything. You know when you went out to talk with your associates, close friends and family for input or advice. All of your hard knocks, bloody knuckles, sweat and tears combined......

• A Debt Management Plan - How Does It Work? A debt management plan can be a useful solution for many people who have become mired down in debt. These plans make it easier for consumers to make progress towards getting out of debt. Before you run out and register for the first debt management plan you find, though, there......
• 5 Ways to Stay Out of Debt When Unemployed The following guest post was submitted by Knight Hooson. Knight was born and educated in Canada before moving to Great Britain in 2002. Now based in London, he writes for The Credit Letter where he blogs about managing credit cards and personal finance. When not working, he enjoys learning about......
• Learning the Basics of Money Management For many people, the prospect of money management is just too much to handle. Nobody really enjoys being a bean counter, and if you're spending too much and having a good time doing it, money management may be the farthest thing from your mind. However, given the state of the......
• Money Management During Tough Financial Times Personal money management can absolutely be a challenge, especially when you are tight on cash. Payday never seems to come in time, and your pockets probably feel empty long before the bills have all being paid up. Here are some basic but essential tips for money management that can help......
• How To Create A Money Management Plan The number of people that find themselves spending more money than they make each month is steadily increasing as prices rise and the number of people that find themselves in this situation will only continue to grow as the economy continues to slow.  Many people depended on credit cards and......