I am Paying Off My Debt and so is the Rest of America

Day 311 of my Financial Freedom Countdown

I have paid off over $20,000 of credit card debt this year and I am not the only one reducing my debt. Americans have paid off nearly $1 trillion in debt over the past 2 years. Total consumer debt was $11.6 trillion as of September 30; down 7.4%, or $922 billion, from the peak reached in the third quarter of 2008.

"Americans are borrowing less and paying off more debt than in the recent past. This change, which we continue to study carefully, can be a result of both tightening credit standards and voluntary changes in saving behavior." Donghoon Lee, senior economist in the Research and Statistics Group at the New York Fed Said in a statement.

"Lending practices are tight making it more difficult for people to secure more debt," said Chris Viale, president and CEO of Cambridge Credit Corp., a non profit credit counseling agency based in Agawam, Mass, "The only choice they have is paying down debt."

I am pleased to see so much debt being paid down. However, from the sounds of it, it seems that most of the debt reduction is due to cosumers being forced to by their creditors. Like me, many have had their limits reduced or credit card accounts closed through balance liquidation programs. But if you are following Dave Ramsey's plan it doesn't matter if your credit card accounts are closed. You aren't going to need them anyway. Debt snowball those balances into an oblivion!

(via CNNMoney.com)

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

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I Have Paid Off $10,991.62 in Debt So Far in 2010

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Here's my first status update for my five year debt reduction plan. It is amazing what you can accomplish when you sit down and start working things out.

So far to date I am $10,991.62 lighter in debt. It is such a rush to see these balances finally starting to come down. I really can't describe what it is like, but I still have a long way to go as my plan is designed to be debt free in five years.

This first quarter results will probably be the highest for my debt reduction. Mainly because of the awesome offers I received from Chase. Second quarter will be close as all of my credit card re-payment plans will be wrapped up.

I will give kudos to Chase until I am blue in the face for the fantastic deal they gave me on a debt reduction plan.

Under Chase's Balance Liquidation Program or BLP they reduced my interest rates to 0.00%, waived my over the limit and late fees, and took off over $6,700 of interest from my balances to date.

Bank of America did not give me as sweet of a deal, but did lower my interest rates considerably. Between Bank of America's and Chase's debt management plans I am really seeing my debt go done and I am finally feeling that I can beat this and I will once again know what it is like to achieve financial freedom.

Now that I have my credit cards where they are more manageable to pay I will begin working on my next stages of my five year plan to eliminate my six figures of debt, which will include tweaking my budget again and working on getting a making home affordable program or a loan modification.

Stay tuned. The best is yet to come as this blog will be one day re-named Debt Free...Again!

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

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How Do You Get Creditors to Re-age Your Account?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

What does does it mean to re-age your credit card account? In all of my years in banking I have never heard of the term re-aging.

The fact that I have never heard of the term maybe because in my long credit history I had never ever been late on a payment until last year.

I recently set up a good majority of my credit cards with both Chase and Bank of America on what they called their Balance Liquidation Program or BLP. But yesterday I received a letter from Chase stating I now qualified for their Reage Program and I thought what does re-age mean. Here's what I found:

Re-aging a credit card account can give you a fresh start with your creditors! The creditor will give you a clean slate like nothing happened from what I am gathering. So for instance I was 7 months past due on all my accounts. If what I have found in my research is correct that would mean they would remove the 7 months of past due payments from my credit report.

I have also found that a lot of creditors won't re-age your account. So if you try this with your creditors don't be disappointed if they won't do it. Also, some creditors follow federal guidelines, which allows them to re-age your credit cards once in a 12 month period or twice every 5 years.

According to the letter I received from Chase if I fall behind on payments again I may not be eligible for this program again for 5 years.

I have no intention on falling behind on payments again, but I never thought I would ever be late on payment either. So you never know.

I probably wouldn't try re-aging my account if I were only late by a month or so, but if you are a few months behind with your payments then it might be worth it. Also, be sure you are ready to commit to the program before you start it. You don't want to get it going and then not be able to make the established payments.

If what I have found is true and Chase does remove the past due payments that were reported I am going to be tickled pink. Not only did they remove over the limit and late fees, drop my interest rate to 0.00%, and take off thousands in accumulated interest, now they are bringing my account current. Now that's what I call customer service!

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

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• Subscribe in a Reader (RSS)
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Chase's Balance Liquidation Program Remains the Best...Bank of America's May Have Hit a Snag

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

I am so mad at Bank of America I could scream! To my surprise when I came home tonight I found I received a letter telling me "Act now-before we'll have to write off your account as a bad debt."

Bank of America has offered me to settle on one of my credit cards. Actually, it is the last card that I had put on their Balance Liquidation Program just a few weeks ago.

How the heck could this be. Why would I want to settle? The letter went on to say, "Living with past due bills is stressful. It puts pressure on you and and it can affect your relationships. Why suffer through that when there is a better option?"

A better option? I thought I chose a better option by getting on their debt reduction program. Not being put on the program as requested is what's stressful.

I immediately called 1.877.647.9535 as the letter requested. Not to take the offer, but to find out what the deal was. Although, the letter stated they were open until 8 pm my time, they were closed when I called.

The program normally requires for you to set up an automatic payment plan for at least a year, but this last card was not required to be set up. It has made suspicious that this card didn't not get set up as requested.

I am really hoping this letter was just crossed in the mailed. Otherwise, I am going to go through the roof if this card wasn't put on the program. I'll be calling again first thing in the morning.

In the meantime, Chase's Balance Liquidation Program is running smooth as silk. My credit repair and five year plan to pay off my six figures of debt is in full swing.

Chase has waived my over the limit and late fees, deducted thousands of accumulated interest from my balances, and dropped my interest rates to 0.00%. What more can I ask for?

I'll find out tomorrow, but I hope Bank of America hasn't royally screwed up.

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
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Is Your Financial Crisis Nearing the End?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Your credit score has been decimated, you may have lost your job or taken a reduction in pay, your 401K fell like a rock, you may have even lost your home or are facing a foreclosure. After all this, do feel like the financial crisis is behind you?

Reports last week show the economy grew at 5.9% in the fourth quarter of 2009. The stock market is still down from its highs, but is up about 70% over the past year and the White House is stating the "The trend has turned."

For many, including me, our financial recovery is far from over. My income had fallen to a third of what it once was, I accumulated over six figures of debt, my credit, which was once had a high FICO score of 811 has most assuredly taken a dive, and my homes have lost over a quarter million in combined value.

If you are experiencing similar circumstances you are probably feeling like there is no way things will ever get better. But is it really as bad as it seems? A number of studies by behavioral finance experts show, we are naturally programmed to think things are worse than they actually are and thoughts like that can actually keep you from getting your finances back on track.

Taking control of your money means taking control of your emotions that can prevent you from making wise financial decisions and that would normally guide you in devising an action plan to help reach your financial goals.

I have felt like there was no hope of paying off my debt both times that I hit the six figure mark. Both times I looked at bankruptcy as the only answer, but it doesn't have to be that way.

I had really thought back about the first time I was in massive debt and how I paid it off. This second go around at six figures of debt is no different.

The feelings of hopelessness have begun to fall by the way side. The first time I decided bankruptcy wasn't an option for me I developed a plan and stuck to it and just as I paid off that debt in five years I have developed a new financial plan to payoff this debt in five years too.

This mindset along with the first stage of my plan (get on a debt reduction program) has begun working wonders with my finances.

Talking to my creditors and putting my credit cards on balance liquidation programs with Chase and Bank of America has begun to turn my emotions from despair to abundance.

With the Chase accounts having their interest rates dropped to 0.00% and thousands of interest charges being waived has allowed my to see light at the end of the tunnel. Just looking at the statements and watching the balances go down gives me such a thrill now it just makes me want to keep going and as Dave Ramsey says, "Run from that debt like a gazelle."

So make a plan and stick to it. Come out of the closet and let people know the jam you are in. Research shows you make better progress towards your goals if you are kept accountable. Let your family and friends know your plans.

If you don't feel you are ready to tell them yet you can tell me. Just email me and I'll encourage and hold you accountable to paying off your debt. If that doesn't work for you either you can make a "commitment contract" on Stickk.com, which will force you to cough up cold hard cash if you don't make your goal. Whichever way you want to come clean--just do it already!

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
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Emergency Fund Depleted and Cutting Into the Budget

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Well the $400 start to my emergency fund has been depleted. I bought three new tires for my car and went over budget by $109.

I originally had planned to buy two new tires for my car. The front two were the worse and actually were pretty bad, but the rear tires didn't seem that bad to me and I had hoped to be able to wait on those.

Turns out the rear tires were pretty bad too and so I went ahead and bought a full set. I was really happy with the price that Discount Tire gave me for the four tires.

Originally, I had planned to get two run flat tires and hold off on the other two. The tire shop just about matched the price for the four regular tires that what the two run flats would have cost me. Although, my budget was $400 I did get out the door for $509.

The extra $109 cut into my budget of what I wanted to spend, but actually my budget overall had a $200 surplus that I haven't allocated yet. So it wasn't too bad.

I am determined to keep an eye on my finances and not go over my budget or have to charge on my credit cards. I also don't want to jeopardize my balance liquidation programs.

I have the majority of my credit cards set up on a debt reduction program or BLP with Chase and Bank of America and I am determined to make sure I always make those payments on time.

If I miss a payment I can be removed from the program and if that happens my accounts will return to their high interest rates and all the fees and interest that Chase waived will be added to the card balances one again.

I should be able to start re-building my emergency fund within the next week. I'll keep you posted.

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
• Follow us on Twitter
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What is the Number to Get Started on Chase's BLP Plan

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Fellow Chase account holders have been asking for the number to start Chase's Balance Liquidation Program. The number I had called was 1-800-472-0497.

If you are having trouble making payments on your Chase credit cards I highly recommend calling them. Chase seems to really want to help their borrowers get back on track.

All of my accounts with Chase have been set up on their debt reduction program and I was blown away at what they had offered me in regards to my interest rates, late fees and over the limit fees.

Chase had dropped all of my interest rates to 0.00% interest. So now with each payment I make my balances are going down and I am beginning to see light at the end of the tunnel. Next they waived all of my late and over the limit fees. So that gave me an immediate reduction in balances right off the bat. But the icing on the cake was that they took off a total of almost $9,000 of interest from my credit cards.

If you haven't already picked up your phone and called Chase, do it now. Chase has one of the best debt reduction programs I have seen. If they offer you the same deal they offered me, I guarantee you won't be disappointed.

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
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Late Payments Killed the Credit Score Star

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

This year is off to a great start now that my path to financial freedom is in full swing. Now that I have established the majority of my credit card accounts on a balance reduction program my debt is really getting knocked down.

This first quarter will probably show the biggest dip in my debt do to the fact that Chase's BLP program took off approximately $9,000 in interest payments. I'll be giving a full report on the progress of my five year plan to eliminate six figures of debt in the next couple of days.

One thing I need to do is check my credit report. I haven't done this in quite a while and I am afraid to look. I once had a high FICO score of 811 and I am sure this has been decimated by the high amount of debt I have plus late payments.

I began letting my payments go late as my financial house of cards collapsed. I had warned my creditors that there was going to begin to be a problem, but no one would listen. Once things became late they listened and as previously mentioned I was able to get on the debt reduction plans.

I will be pulling my credit in the next couple of days and I will report on that as well. But what has become of my credit score?

I have two main things against me when it comes to my FICO...late payments and big balances. How do those two things come into play?

If you have a great credit score a late payment can knock down your score by as much as 110 points. An average score can be dinged an average of 80 points. So my score I am guessing has been whacked pretty hard, but getting back on track should start pushing the credit score back up.

Barry Paperno, consumer operations manager at FICO says, "This continues to be the number one reason scores are lower. In addition to being a heavily weighted part of your score, if you're late on a payment, it's going to continue to appear on your credit report for about seven years."

It's a good thing that the longer it has been since you have been late on a payment, the less it impacts your score. So as time goes on this should help my score improve. The bad part is payment history accounts for 35% of your total score.

How much of your credit is used determines for about 30% of your score. So my six figures of debt was not only costing me a fortune in interest, it has probably killed my credit raing.

Bill Hardekopf from Lowcards.com says, "The best thing to do is pay your bills on time and pay as much of the balance as possible to try and keep your debt utilization ratio down and raise your credit score."

We discussed the other day that as part of the CARD Act that went into effect in February, creditors must provide a chart on your statement of how long it will take to pay off your balance if you only pay the minimum payments. In most cases it would take you 22 years to pay off your debt. The chart also shows if you pay a little bit extra you can have the debt paid off in 3 years.

I think this is going to be a huge wake call for most people and Hardekopf thinks the same.

He says, "It was shocking. This is going to have a dramatic effect on how much people are re-paying when they see it in black and white, and will be a positive move for their credit score."

So with my cards on BLP plans and me paying extra towards my other credit cards I am expecting my score to start improving almost immediately. I'll be posting the progress on my credit score with correlation of my six figures of debt soon. Stay tuned.

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
• Follow us on Twitter
• Follow us on Blogger 

Chase's BLP (Balance Liquidation Program) is Still the Best

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Well, it is finally done. I added my last credit card to Chase's Balance Liquidation Program. Just like before, Chase's BLP is still the best.

I have been kind of putting it off for a while as I continued to tweak my budget. I don't want to start these programs and then not be able to afford it.

JP Morgan Chase called me tonight about the remaining credit card that was still not set up on the program. So I figured since they called it was just a good of time as any to get it set up.

At first I thought the deal on this card was not going to be as great as the others as they wanted to give me a interest rate of 2.00%, which I was taken a little bit off guard. I was a little surprised with the interest rate because they had given me 0.00% on my other credit cards.

I explained to the rep that I was given 0.00% on my other cards, which she verified and quickly gave me the same offer on this card. If any bank tries to get you to pay any kind of interest definitely demand they give you the lowest rate possible.

Remember you are trying to do the right thing and pay back your debt. Do the banks want to get paid or don't they? You could easily default on the card or file bankruptcy. So be sure they help you as much as they can.

Chase also offered me the same deal to waive thousands in interest along with over the limit and late fees.

Now that I have made the switch once again to a debt reduction program this helps solidify my journey to be debt free in 5 years or less. This would be the last card paid off if I continued the program. Here's to 3/31/15. The day a will be debt free...again! Thanks Chase.

Kudos To Wells Fargo Financial

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

I talk up a storm with giving kudos to Chase and their Balance Liquidation Program and helping my financial situation and my six figures of debt. They have reduced my balances by removing thousands in interest and fees. Way to go Chase and thanks so much for your help.

Now I have to give kudos to Wells Fargo Financial. A couple of months ago, when I was looking into bankruptcy, I had quit paying all of my accounts including my account with Wells Fargo. So of course I received an over the limit fee and a late fee.

However, today I received my statement for my next payment and was pleasantly surprised to find a credit for the overlimit fee. I didn't even ask for it. I was totally expecting to pay the fee, but Wells removed it with no questions asked.

Also, while reviewing the statement I am consistently floored by the required statement format. Creditors are now required to disclose how long it will take to pay off the debt by paying the minimum payment.

In my case by paying the minimum payment it would take 22 years to pay off the debt. By paying an extra $34 it knocks the re-payment time down to 3 years. Saving 21 years of payments and $5,577 in interest.

My goal (using Dave Ramsey's plan) is to payoff my smaller balanced card, which I am currently paying $43 a month on, and then take that $43 and apply it to the minimum balance on this card and paying it off sooner than later.

So far banks in my book are as follows:

Chase 1
Wells Fargo 1
Bank of America .5

Thanks Chase and Wells Fargo for stepping up to the plate for customers that want to pay back what they owe you.

Is Bank of America Helping People with Their Balance Liquidation Program?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

I have put several of my accounts on Bank of America's Balance Liquidation program. I am happy to say that I am no longer accruing late and over the limit fees and that my interest rates were reduced considerably.

It turns out that I am not the only. According to Bank of America they have modified 1.4 million consumer and small business credit card accounts. Under the banks BLP program the modifications may include a rate reduction, elimination of fees or debt settlement.

Tom Home, from Bank of America's Proactive Account Review team says, "Customers want to pay their bills and maintain a positive credit history." Home also said, "We do everything in our power to help them get back on a more solid footing, while at the same time doing all we can to mitigate credit losses for the company. It is a delicate balance, but we have an extremely talented team committed to doing just that."

Although Bank of America did drop my interest rates I still feel they could have done better. Chase lowered my rates, as well, but they lowered them to 0.00%. They also waived thousands in interest, where Bank of America waived nothing.

The banks states that they helped more than 1 million consumer credit card customers last year alone with their loan modification programs and gave customers a new payment schedule, revised annual percentage rate or reduced fees. These are the same offers I received, but is that really all they can do?

One solution they offered a customer was an internal "fixed-payment" solution. With the fixed-payment program, the card is closed and the customer pays off the loan in full over 60 months with reduced fees. This customer supposedly had their payment dropped by more than half and he went from considering bankruptcy to being hopeful.

All of this sounds like exactly what I received, but only one of my payments were cut in half under Bank of America's plan. I have said this before that the bank didn't have to do anything, but when they talk about clients wanting to pay back what they borrowed, they are talking about me.

I am choosing not to file bankruptcy and I am working on doing the right thing. So come on Bank of America you can do better. Step up to the plate and do what Chase has done. Drop those rates to zero percent, waive some interest and fees, and maybe make those 60 months of payments to 72 months of payments. Or even more.

Bank of America's new motto is "Making Successful Home Owners". Let's make some successful credit card holders too.

Dave Ramsey vs. Suze Orman

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

The first time I was six figures in debt I turned to Suze Orman for help to get them pesky piles of credit card bills down and paid off. This time around I am looking into Dave Ramsey's techniques.

Now don't get me wrong I still love Suze and her advice worked wonders my last go around with debt. But Dave's approach with debt is a little different.

Being in banking for twenty years and having a finance degree, plus having six figures of debt before, you are probably thinking how the heck did you let this happen again?

Basically, I lost my focus. Everything I have learned about finance and what I learned the last time I paid off my debt went out the window. So I am getting focused again and as Dave would say I am running from this debt like a gazelle.

So, how different are Suze and Dave? Really not all that much, but here's some of the differences.

I feel Suze stresses not putting anything into savings until your debt is paid off. Which I see her point in that the interest on your credit cards is most likely higher than what your savings account is paying so you are losing money. Pay the credit cards first. But Dave teaches with his Baby Step # 1 to build an emergency fund of $1,000.

The emergency fund of a $1,000 has a safety net feel for me. That there is actually cash money safe and sound somewhere that I can get to for an emergency like a night out on the town...just kidding. No for car repairs or something unexpected. After that though Dave does stress to start working on paying off your debt and not worry about savings for the time being.

Next Dave says to start with the credit card that has the lowest balance on it and work on paying that one off first. Just like the savings plan Dave is on the opposite side of the fence from Suze on this one. Suze would say to pay off your credit card with the highest interest rate first. Which mathematically makes sense, but does math makes sense to most people in debt?

Dave's approach to debt is more psychological to me than mathematical. Debt is usually psychological to begin with. The need for stuff, which is what usually puts people in debt to begin with, is psychological in nature itself. So paying off the easier balance to tackle first gives the feeling of wow I can do this. Let's move on to the next one.

As I mentioned in a previous post I have begun building my emergency fund. I have $400 in there now and soon as I hit the $1,000 mark I'll be moving on to paying off my lowest balance credit card. Let's see how this works out.

Get paid to Party: Have a Gold Party to Start Your Emergency Fund

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Ever get paid to party? I was invited to come over a friends for a gold party the other night and actually got paid to party.

Basically you bring whatever gold you have and trade it for cash. For example, rings, bracelets, etc. and you get paid to sell it. I had my doubts what I would actually get for the gold I brought, but I was pleasantly pleased.

I was paid just under $400 and had no idea I would have been paid that much. Four hundred dollars for a couple of rings and bracelet. Best of all I got paid right on the spot. I guess with gold selling for almost $1,100 an ounce these days it really adds up.

So what should I do with my newly found fortune?

I almost have all of my credit cards set up with my creditors on Balance Liquidation Programs or BLP. I have decided that would be my first stage in paying off my six figures of debt. Next I began checking into what Dave Ramsey recommends about paying off debt and recently bought Dave's 'The Total Money Makeover Starter Set'.

Dave has a series of steps to follow that he calls Baby Steps. Baby Step #1 is to start an emergency fund of $1,000. Most people I know would say, "I can't save $10 much less a $1,000." Right now I would probably agree with them.

So what can I do to start my fund? I have decided to put my windfall aside and start my emergency fund. Four hundred dollars isn't a bad start towards my first baby step. I am already almost half way to the goal of $1,000. Thanks gold party.

Another Card Converted to Chase's BLP Program

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

I received a confirmation letter for the second credit card I set up with Chase's Balance Liquidation Program or BLP.

I can't give enough kudos to Chase for helping debtors in trouble payoff their credit cards. I would never be able to payoff my six figures of debt without it.

Not only has Chase lowered my payment to a more affordable level they have:

- Reduced my Annual Percentage Rate to 0.00% for all balances.

- Late and over-limit fees are waived while enrolled in the program.

- Eliminate my balance within 60 months.

- Best of all they eliminated over $2,000 in interest.

If you need help paying your credit cards and haven't set yourself up on a balance liquidation program call your bank today.

A Few Extra Bucks Helps the Balance Go Down

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Writing the post title 'A Few Extra Bucks Helps the Balance Go Down' made me think of Jule Andrews in Mary Poppins singing 'A Spoonful of Sugar Helps the Medicine Go Down', but paying a little extra on your balances definitely does help your balances go down.

I have put about two thirds of my accounts on a Balance Liquidation Program so far this year. I continue to give kudos to Chase for their fantastic BLP program. Their plan waived thousands in interest plus late and over the limit fees on my accounts.

I do have a couple of credit cards however that are with other banks and I am not putting them on any kind of debt reduction plan. One reason for this is the balances are relatively low compared to my other accounts.

The other is when you put your account on a balance liquidation program the accounts are closed. So I have maintained these account so that still have open lines of credit.

I am so motivated to pay my six figures of debt within the next five years. If I am able to stick with the debt reduction plans I will do just that, but what about the cards that aren't on a liquidation plan?

Hopefully, most of you are aware of the Credit Card Reform Act that went into action on February 22, 2010. Part of the act requires that your creditors show you how long it will take to pay your balances off. They are now required to show you how long it will take to payoff your balance if you pay the minimum payment amount or sooner if you pay a little extra.

If you received a bill from your creditor lately you should see a Minimum Payment Warning that states something similar to this: If you make only the minimum payment each period, you will pay more in interest and it will take you longer to pay off your balance.

For instance, on one account I have a balance of $1,191 and the minimum payment is $33. If I paid just that minimum amount on that credit card it would take me 11 years to pay it off. Now if I were to to bump the minimum payment a measly $10 I would pay off that card in 3 years.

Needless to say, I am going to pay the extra $10 and have that sucker paid off in 3 years. Not only will I have my other cards paid off in three years I will have them paid off 2 years before the cards on the liquidation plans. All for paying just a little bit more.

If you can afford to pay a little extra towards your credit card balance it will save you tons of interest and will be debt free in no time.

What Happens if I Miss a Payment After I Start the BLP Program

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

I have been tickled pink over Bank of America and Chase's Balance Liquidation Program or BLP. Although Chase did much more for me than Bank of America, the help the both provided for me is phenomenal.

After planning my basic budget there was no way I could continue to make payments to these creditors. So I am thankful for everything they've done to help, whether it was a little or a lot..

As I have written before Chase reduced my interest rates to 0%. Waived thousands in late and over the limit fees and thousands in interest. But what happens if I fall behind again or miss a payment under the BLP program?

I received letter from Chase describing exactly what will happen if I am late or miss payments under their debt reduction program.

If my first payment was returned for insufficient funds, my account would not have been enrolled and I would have been charged a returned payment fee.

Also, in the event I miss two consecutive program payments or up to 5 program payments within my program term, I will be removed from the program, my credit for my interest and waived late and over the limit fees will be reapplied to my account and the interest rate will be returned to what it was before.

If you need help with your credit card payments definitely contact your creditor and see what they can do for you. But be sure you can afford the new payments they offer you before you commit. Otherwise, you could end up right back where you started.

Where Can I Get Help Dealing with My Credit Card Debt?

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

At the beginning of this year I had begun looking into bankruptcy. I quickly decided to seek other alternatives before going that route.

Having had six figures of debt before and paying back every penny I had decided that I could probably pay it off again. So I decided to contact my creditors and see if I could get any help.

I started with Bank of America first. I discussed their Balance Liquidation Program or BLP with them. They had offered me reduced interest rates on all my credit cards, but didn't offer waiving any late fees.

I decided to check other options before committing to the banks BLP program. A lot of people I know have considered using a debt consolidation company to help with their credit card debt. You do NOT want to go this route.

These kind of offers are usually rip-offs and can end up doing more harm than good. Now matter how good the offer they make sounds, don't do it.

These companies generally don't tell you that they will probably charge 10 percent of what you owe on your credit card balances. In the event they do end up working out a settlement with your creditors they will most likely charge you another 10 percent on the amount they "save" you.

These types of companies will most likely NOT tell you that what they have negotiated for you will destroy your credit score and that you will end up owing income tax on the amount that was forgiven. So this was not the way to go for me.

So I contacted the National Foundation for Credit Counseling. The NFCC is a network of nonprofit agencies trained to help you asses your financial situation and plan out the steps necessary for you to follow. Remember they don't wave a magic wand and make everything go away. Getting out of debt is no easy thing. Unless, you have a rich uncle willing to pay it all off for you or you hit the lottery you will have to work hard at paying off your debt.

When I made my appointment with my local NFCC I had to wait over a week to get in to see anyone. Which means there are a lot of other people in this situation. It also makes me feel good that people are looking into other options rather than throwing in the towel and filing bankruptcy.

The meeting was interesting in the fact that after laying out a quick budget that there was absolutely no reason for me to file bankruptcy and I should take the banks offer and run.

The interest rates that the banks offered could not be beat by the NFCC. The rates would have been pretty close, but it wasn't worth taking. Even though the rates were almost comparable, it would have meant I would have it reported on my credit report that I was using a credit counseling service. So going with the banks BLP was the way to go.

I have one more card to set with Chase and then all of my accounts will be under the balance liquidation program.

If you are looking for help with your credit card repayments definitely start with your bank first and see what they can offer you. If that doesn't work give the NFCC a call at 800-388-2227 or visit them at nfcc.org. They're the ones you can trust.

We also recommend:

Chase's Balance Liquidation Program is Fantastic

Should I Use a Debt Consolidation Company To Pay Off My Debt?

Bank of America's Balance Liquidation Program (BLP) Still Sucks

Just Picked up a Copy of Dave Ramsey's 'The Total Money Makeover'

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

Stage one is almost complete of my five year plan to get rid of my six figures of debt. As you have read before, stage one for me was to work out repayment plans with my creditors for my credit cards.

I have signed up with Chase and Bank of America for their Balance Liquidation Programs or BLP as they are called. I have set up all of my accounts with Bank of America under this program and have one more to go with Chase, which I will probably set up this week with them.

I am now moving on to stage two of my debt repayment plan and I have gained interest in Dave Ramsey. The last time had six figures of debt I had followed Suze Orman's plan, which worked perfectly for me. I still love Suze, but thought I would take a look at what Dave has to say about debt this time around. Knowledge is power!

A couple of my friends who have also been hurt by our current economic crisis have begun taking Mr. Ramsey's 13 week course 'Financial Peace University'. They have really enjoyed it so far and have suggested that I sit in for the class. I haven't yet, but it is definitely on my calendar.

They had purchased a kit for the Financial Peace University to start class, which they bought for about $100. I heard that the set sells for as much as $200.

While at Sam's club today I came across Dave's 'The Total Money Makeover' starter set and picked it up. It was fairly cheap for $33.66 for the entire set. The set included the following:

The Total Money Makeover, Revised 3rd Edition, Dave provides a step-by-step process for saving money, getting out of debt, creating a personal budget, and investing for long-term wealth.

The Total Money Makeover Workbook, Dave gives solid, hard-hitting advice and the "hope" and the "how-to" needed to turn goals into reality

Financial Peace Personal Finance Software, is an easy-to-use tool to help you take control of your money and direct your finances.

Cash Flow Planning DVD, Dave shows you how to lay out a plan for your money, live on less than you make, pay your bills, save money, and still have some cash left for fun. This is also the 3rd lesson plan for the Financial Peace University.

Dumping Debt DVD, From car loans to mortgages to borrowing money from a plan 4 from The Financial Peace University.

For $33.66 I think this will fit into your budget. So head over to Sam's club and get yourself set. I can't wait to get into mine.

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
• Follow us on Twitter
• Follow us on Blogger 

Bank of America's Balance Liquidation Program (BLP) Still Sucks

Last but not least, I set up the last of my Bank of America credit cards on their Balance Liquidation Program or BLP.

The Balance Liquidation Program is designed to help you repay your credit card debt in five years with a reduced interest rate. After my first go at a budget I had determined there was no way I was going to able to pay all of my creditors without some help.

Bank of America was the first creditor I began working with to payoff my six figures of debt. They took all of my expenses and income into consideration to determine how much I could afford to pay towards my debt.

I initially was pretty happy with what Bank of America had offered me. On one card they lowered my interest rate by 26 percent, the other by 13 percent, and this last one by 9 percent. They also waived any over the limit fees from now on.

My payments in some cases have dropped by as much as half. So I didn't think that it was all that bad deal...at first.

When I moved on to my credit cards with Chase I was floored at what they offered me. First off Chase did not go into as much detail with my expenses as Bank of America did. Next they offered to drop my interest rates to zero percent. But the greatest part of it all was they waived thousands in interest and late and over the limit fees.

Either way Bank of America didn't have to do anything. They could have sent me to collections or charged the account off. But again I would not be able to pay back my six figures in debt without it and it did fit into the budget. I just wish Bank of America helped a little bit more compared to what Chase offered to me. Come on Bank of America you could do better.

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks 
• Kudos to Chase...Bank of America Can Suck It
• Chase's BLP is Awesome...Bank of America's Sucks
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 
• Chase's Balance Liquidation Program is Fantastic

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
• Follow us on Twitter
• Follow us on Blogger 

Chase is Really Earning my Business

[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]

As you have probably been reading over the past couple of days I am a huge fan of Chase's Balance Liquidation Program. This program is a five year debt repayment plan over five years.

For my BLP plan Chase waived thousands of dollars in interest and over the limit and late fees. To me this is what needs to be done to really help consumers, who have had their incomes reduced by the current economic crisis.

If you have accounts with Chase and you need help repaying your credit card debt, definitely give the bank a call and talk to them about the debt repayment plan they offer.

In the meanwhile, Chase just sent me an offer to open a checking account with them. For opening the check account they are offering $100. A $100 just for opening a free checking account. Can't beat that, can you?

So not only has Chase quit charging me interest and waived thousands from what I owe,they are giving me a hundred dollars to open an account. What a way to earn my business. Thanks Chase!

We Also Suggest:

• Bank of America's Balance Liquidation Program (BLP) Still Sucks     
• What's the Best Way to Pay off My Credit Card Debt If I Have a High FICO Credit Score ?
• How did This Economic Crisis Start?
• Should I Use My 401K to Pay Off My Mortgage?
• Should I Take Out a 401K Loan to Pay Off My Credit Cards? 

Now What Do I Do? 

• Follow my journey to pay off debt and subscribe by email.
• Subscribe in a Reader (RSS)
• Follow us on Twitter
• Follow us on Blogger