Bounce Back From Holiday Financial Overindulgence

Freedom Financial Networks 5-Step Debt Diet"

(PRWEB) January 5, 2005 -- During last years holidays, American households racked up just over $115 billion in retail spending -- half of that on their credit and debit cards, according to Cardweb.com. For 2004, the National Retail Federation projected that November and December sales would increase by 4.5 percent over last year, to $219.9 billion.

If youre among the millions feeling the pinch -- or downright painful stab -- of post-holiday credit card debt, Freedom Financial Network, LLC, a national consumer debt resolution service, has five ways to help you trim down your post-holiday credit card flab:

1.   Weigh your debts -- Are you in over your head? If youre feeling uncomfortable, you might be in some danger. A yes" to one or more of these questions signals real trouble:
a.   Are you behind on any monthly payments?
b.   Are you getting calls from collectors?
c.   Do you find yourself juggling credit card balances to pay off other debts and bills?
d.   Are you using credit cards (and carrying balances) to pay for necessities (food, housing, utilities, auto payments)?

2.   One-two-punch debt workout-- Knock out overspending with two punches. First, write down all your expenses in two categories: necessities (housing, food, clothing) and extras (designer clothing, movies, dinners out, lattes). Then, give yourself a weekly budget for extras, and if you go over, cut yourself off.

3.   Crash diet -- If your expenses exceed your income, take action now! Eliminate extras completely. Prioritize your debts, with secured debt first (mortgage, car). Your mortgage payment should take absolute first priority. List your unsecured debts (credit cards, loans) in order of highest interest rates. Make minimum payments on all but the highest interest rate. Use every cent of available income to make large payments on the highest interest-rate card. When that one is paid off, pay the big payment plus the old minimum payment on the next highest rate card until its paid off. Continue until youve eliminated your debt.

4.   Negotiate -- If you cannot make even minimum payments, call your creditors and ask for temporary hardship status. Some creditors will work out payment plans with you.

5.   Find a debt doctor -- Your best resource is handling debt yourself, because it protects your credit score. But if thats impossible, understand your debt counseling options:
a.   Debt resolution allows you to qualify for lower payments and provides the potential for negotiated settlements to resolve unsecured debts. Pro: Its the fastest way out of debt without bankruptcy. Con: It can significantly impair your credit score.
b.   Credit counseling lets you lower interest payments to your creditors. Pro: Lower monthly payments. Con: Up to five years of making payments, and minimum payments may not significantly decrease.
c.   Bankruptcy (Chapter 7 or Chapter 13 filings) should be a last resort. Pro: Eliminates debt (Chapter 7 filing). Con: Long-term adverse credit rating consequences.

Once youve eliminated your debt, youll feel surprising freedom, with no more sleepless nights worrying about how to get control. Do it now -- before you lose any more of your life to debt.

Freedom Financial Network, LLC (www.freedomdebtrelief.com) provides consumer debt resolution services through its Freedom Debt Relief, Freedom Foreclosure Relief, and Freedom Tax Relief divisions. The company represents the consumer exclusively, serving in a position of mediation and negotiating with unsecured creditors to offer an alternative to bankruptcy, credit counseling, and debt consolidation. Based in San Mateo, Calif., Freedom Financial Network serves more than 2,000 clients nationwide and manages more than $70 million in consumer debt.

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