Debt Reduction Planning Tips and Tools

It's easy to get caught up into the belief that we have more money to work with when we fall prey to using credit cards and other consumer debt to acquire things we either want, need, or think we need!

Ninety days same-as-cash, six months, or twelve months same-as-cash are actually a great way to make purchases with borrowed money, and it's the method that is my personal favorite. There's nothing better than using same-as-cash as an ideal financial leverage. However, you will only want to take on the amount of same-as-cash accounts that you know you can have paid off before the end of the promotional time period! Otherwise, you will end up paying interest on the purchases you made and therefore defeat your purpose of making use of the same-as-cash strategy.

One word of caution in regards to the same-as-cash account strategy is the fact that you also don't want to have too many active and open accounts on your credit record since it will lower your credit score. My word of advice is to therefore only select several stores you would most likely frequent and make use of their same-as-cash promotional offers. For example, if you frequent several hardware or home improvement stores, choose your favorite store and only open an account with that one store, not both. That will help you to keep the number of open accounts on your credit score down to a minimum.

If you want to reduce and eliminate your consumer debt you need to have a solid plan to strategically attack the challenge. There are many resources available to help you reduce your debt, and you will find many good resources to get you started with this debt reduction planning tools list. Please note that we will be adding other resources to the list, but here's some links to get you started:

5 Steps Toward Debt Reduction for the Do-It-Yourself Approach
The article at the link above is a great 5 step program to strategically begin your plan and how to approach debt reduction.

Anyone Can Become Debt Free
Some believe that only the rich can eliminate their debt, but Dave Ramsey's article will explain why that is only a myth.

CNN Money Debt Reduction Calculator
A simple tool to calculate your current debt and to determine how much you will need to pay monthly in order to eliminate your debt by a specific date.

Intuit's Quicken Debt Reduction Planner
Use their tool to get a good start by building a plan to get out of debt.

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