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Needful Help & Rescue from Personal and National Debt – Insights Concepts and Facts

c. Donald Reinhardt, July 12, 2011

Debt and credit are tied closely to each other. Too much debt without enough resources to pay this debt back leads to bad personal and national credit. To solve any debt and credit problem it is necessary to manage and eliminate as much unnecessary debt and expenses as possible.

The United States debt and your personal debt may bear a strong resemblance to one another. How is this so? 

  • If what you pay out more than you take in as income there is a problem. 
  • If you do not have enough money to cover your expenses and your debt amount keeps growing. 
  • If you have make a promissary note and you cannot cover it at the due date and time.

These are difficult times in America and the world. There is too much debt just about everywhere. With few exceptions (e.g. China) much of the developed industrial world is saddled with debt. Governments and people have big debts and big debt equals poorer credit whenever massive borrowing is required to sustain an economy and manage the debt situation. So, what are the best steps for personal debt relief (see also how this relates to national and governmental debt)?

Eleven (11) Big Steps to Overcoming Debt and Bad Credit and Getting Better Credit Ratings and Rank

Here are the important actions to eliminate debt, restore credit and manage finances:

1. Make a list of all your personal assets and all personal debts and deficits.

2. On that list indicate which items are not needed and can be eliminated. For example, it is possible to live without cable TV, dining out, entertainment and too much fancy cell phone expense.

3. Prepare a budget. Decide which bills must be paid: mortgage(or rent), gas, electric, water, garbage and which bills are to be eliminated such as: cell phone, cable, tobacco, dining out.

4. Decide how much debt is in hand and begin by paying down the smallest credit cards first.

5. Do not charge any more items and add to credit debt. Remember this rule: if you do not need it, do not buy it.

6. Review everything you see. If you have an asset or resource that you can sell and part with sell it at the highest possible price within a set and defined time limit (week, month a year). For example, if there is an extra, unused car consider selling that car. If there is some silver or gold that is just sitting around get the highest value for those precious metals and pay personal debt down even more. 

7. Buy only what you need – do not buy non-essential items. More clothes, shoes, accessories or anything that is not needed are taboo. Non-essential items are not purchased or charged. Remember that restraint in purchasing and judicious and careful planning and budgeting are required at all times.

8. On a weekly basis indicate assets gains and debt elimination. Be diligent and consistent and keep track of your progress.

9. Continue to tighten and restrict expenses and do this as though (and it might be true) your financial life depended on it.

10. Seek professional help when that time comes and you have exhausted all alternatives.

11. Remember where there is financial life, there is hope. Be hopeful.

Credit Card Debt can Trap Budget & Finances, Photo Credit: State of Ohio, U.S.

Resources and References

Editors.The Complete Book of Money Secrets. Boardroom Reports, Inc., New York, N.Y. 2005

Orman, Suze. The Courage to be Rich. Spiegal & Grau, New York. 1999