Debt.

[Caveman Joe]

In order to help others, first you've gotta get yourself into a situation where you're able to do so. If you've crippling financial problems, I reckon you'd be well-advised to sort things out on your end first, so you'll be better equipped to help others later.

I was thinking maybe we could share some tips on getting out of bad financial situations. I'm not talking everyday bad, I'm talking "Some Guys Are Knocking On My Door" bad.

Mods, please move this post to the Financial section if you think it'd do better in there - I'm posting it here as a kind of "Things to do in order to equip yourself to help others" post.

My top two tips:

1. Spank your bank.
If you live in the UK, and you've ever been charged twenty or thirty quid for going overdrawn or over your credit limit or anything like that, take note - those charges are unlawful, they've been unlawful all along, and if you ask your bank for the money back, they will give it to you. See here for more details, and don't you dare feel guilty about it - the law is on your side, and you know they would do the same to you if they could.
Thousands of people have found themselves in perpetual debt simply because of default charges applied to their accounts. Reclaim the money that your bank took from you unlawfully, and use it to help pay off your remaining debt.

2. Don't buy your lunch at work - make sandwiches and take them in instead.
This might seem like a small thing, but if you buy a sandwich for about three quid every day, along with some crisps and a can of Coke, it'll work out to anywhere between a hundred and a hundred and fifty quid a month!

Anyone else?

[KevinG]

bumping this cause I moved it and it should get a little recognition instead of starting at the bottom.

[Wreck]

I can share where I'm at, and what's working for me.

I was in pretty steep myself, but not "creditors knocking on my door" bad. I went for years trying to "get out of debt, get out of debt, get out of debt." It wasn't until I started focusing on wealth that things started changing for me.

If you're in debt, you've obviously had more money going out than coming in. Wealthy people have more money coming in than going out. It's a simple thing to change, but it's how it works. Ditch the consumer's mindset and adopt a wealthy mindset.

Read books like "Richest Man in Babylon," and "Millionaire Next Door." Learn what wealth is so that when you say "I am wealthy," or "I have a wealthy mindset," those things have real meaning to you. This has gotten my very far. I can now see the light at the end of the tunnel.

Since I've been learning more about the Law of Attraction, I'm now trying to manifest the amount needed to put me at Zero. I'm visualizing my ideal, my freedom.

I am also learning to be more temperate and thankful.

[Michelle]

I suggest taking a look at Oprah's Debt Diet.

[pedrotn]

Wow here is a subject that really can cause some problems.

As Wreck stated debt is caused by having more money going out than coming in. This is a common problem in America as we have a negative savings rate as a country.

So there are 2 solutions and only 2 to this problem. Either increase your inflows or decrease your outflows. Steve is the master of increasing inflows so I will leave him to that subject.

Decreasing your outflows:

To truly get out of debt you need to know what you are spending. I normally tell people to keep track of every penny in and out for a money and it is normally very eye openning. I can cook a dinner with a nice side and dessert at home for my entire family for under 20 bucks. Alot of times under $10. However if my wife and I go out to eat and get the same meal it would cost us $40.00 at the very minimum.

Ok so thats roughly a $25 difference per night. If you eat out everynight thats a difference of $750.00 a month. If you eat out 3 times a week thats a difference of $300.00.

Thats just one example. Another example is do you really need a car that has a payment of $500.00 when a $300.00 payment would get you a car that still works for you. Hell in many cities a bike or nothing would do just fine if you are willing to make the sacrifice to get out of debt. The same goes for a house. You hear over and over how people are house poor.

People in debt do not have the luxury of having luxuries.

Start with your income and then payoff your needs. After that start looking at wants and investing.

Income: +

Housing: -
Transportaion: -
Basic Foods: -
Medical: -
Debt Payments: - (please please please please don't just make a minimum payment)

= Disposable Income

Peter

[dorothy hanna]

Financial author, Dave Ramsey has a couple of really good step-by-step books on getting out of debt. It's helping me very much.
He also has a radio program, and website: daveramsey.com. Check it out.

[Wreck]

Bump to Dave Ramsey.

I never got "gazelle intense," but I am very focused.