Understanding Debt and How to Eliminate debt

Debt is a lot like gravity—it’s always weighing you down. Can you imagine being free to soar in the heights of financial prosperity? It does happen and it can happen to you but there are vital steps you must take before debt can truly be eliminated.

Understanding debt

Knowledge is more important than money. A person indebted to another yet with knowledge will have the tools necessary to eliminate that debt but a person with money and without knowledge will not only lose their money but will invariably become indebted. Understanding what debt is, how debt affects the consumer, who controls debt and why are all areas that will equip the savvy consumer with the wherewithal to become financially prosperous.

What is debt? Debt is defined as “good” or “bad.” Debt is also differentiated from expenses such as normal recurring bills as the phone, electric, cable TV, or even alimony. Generally speaking, debt is any bill where the consumer is charged interest but may also include medical bills, auto repairs, home renovations where materials are charged or a contractor is owed.

• Good Debt: Mortgage and student loans
• Bad Debt: Any debt with interest (with exception of the above) such as credit cards, auto loans, personal loans, charge accounts, payday loans, etc.

How does debt affect the consumer? Debt has a number of adverse effects on the consumer. Debt is a burden that the person owing must carry—the greater the debt the greater the burden. Debt causes stress which affects a person’s entire life:

• At work—ability to function to full capacity is impaired with personal responsibilities, with co-workers or as a team, and signs of distress, irritableness, and lack of patience becomes apparent. Harassment at work from bill collectors adds to the pressure.
• At home—stress from debt promotes an unhealthy environment for the whole family. Meddlesome relatives or friends offer bad advice. Frequent fights between spouses may and often do lead to seeking unhealthy companionship outside the home and eventually to divorce. Ultimately children suffer many lasting blows from this type of unstable environment where role models are not to be found.
• Physically—statistics show physical health suffers dramatically in the wake of too much stress over an extended period of time leading to a poor immune system affecting any number of ailments and diseases.
• Emotionally stress takes a heavy toll as feelings of failure and self worth lead to further debilitating circumstances including the deep depression often associated with the midlife crisis.

Who controls debt and why? Believe it or not the financial industry wants you in debt. Banks, finance institutions, credit card issuers, personal account granters, auto lenders etc, all want you in debt and it’s not even the principal they are most interested in—it’s the interest! Think of it this way; if you were lent $10,000 today and paid back $10,000 next week how does that profit a lender? It doesn’t. But if the lender can get you to make the bare minimum monthly payments while charging you a high interest rate then they are going to profit from you a lot more then they hope you will ever know. It’s all mathematics with some statistics thrown in—the money will always increase for the lender and statistically if the consumer can be enticed into enough debt than the consumer will traditionally become a slave to the lending industry.

Fighting Back

Debt education includes knowing what your rights are. Say for example you get a bill in the mail claiming you owe ‘x’ amount of dollars to company XYZ. The problem though is that you have never heard of company XYZ and therefore do not believe you are indebted to them. What should you do? You might try calling but in today’s age of computers with menus for about everything under the sun and with many companies existing as branches or subsidiaries of larger companies and with often poor internal communications within organizations and having to talk to a customer representative that you can hardly understand, using the phone may be more work than paying the stated debt. Instead, simply send a debt dispute letter and let them do all the work. Using the phone means you must try to remember when you called, who you talked with, and what was said and even then you have no way of knowing if the person on the other end is actually going to take the time and resources needed to resolve your issue. With a debt dispute letter you have everything right from the start documented—it is your protection and lays the burden of proof back on the company demanding payment (just remember to keep a copy of all correspondence for your records). Here is an example of just such a letter you can print off the Internet for free and a link to a website with a host of equally valuable letters.

Debt Collection Dispute Letter

http://www.debt-n-credit-letters.com/

Gene Jolley, creator of the Rapid Debt Reducer software, has seen the abuses credit companies employ when offering easy credit and payday loans and such that are designed to squeeze every cent out of the American consumer. Education is atop what Jolley does in his debt elimination seminars. The ideal of life, liberty and the pursuit of happiness have turned into a corporate take over where most consumers work hard to line the wallets of grinning CEO’s. Gene is dedicated to the reeducation of America and the return to that lofty ideal—education is key.

Rapid Debt Reducer Debt Elimination Software.
Debt Elimination Software. The answer is The Rapid Debt ReducerTM, a computer program which gives you the tools you need to get completely out of debt in as little as 5 to 10 years - including paying off your mortgage! Comes with free budgeting software! As DEBT goes down NETWORTH goes up!

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