Debt Free in Record Time – Keep This Years Resolutions

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The American Credit Foundation proposes three simple steps to make 2005 the most effective financial year yet.

With consumer debt at an all time high, the American Credit Foundation proposes three simple steps to take control and get out of the "debt trap" this year. Through, the American Credit Foundation is a non-profit consumer credit counseling organization with over ten years of debt management experience.

To remove the burden of debt pressure, recommends taking the following steps:

1.    Commit now to discontinue the use of credit cards. Cut up the cards that you have, call the companies and close the accounts. If you use a business credit card, consider trying a debit card. These are widely accepted and funds are pulled directly from your checking account.

2.    Figure your monthly minimums for each of your debts and (if possible) add 5% or 10% to this number. This addition is not mandatory but will dramatically improve the success of the program.

3.    Promise to make the above-mentioned payment from now until the debts are completely paid off. Even after the minimum payment requirements go down over time, continue to make the same payment. When one card is paid off, apply the extra funds to one of the other debts. promises that this three step commitment will make a huge financial difference. Consider, for example, a $2000 debt on a credit card with a 21% interest rate. By making the minimum payment each month, the debt owed will continue for 19 years, accruing a total of $6725.64 in principle and interest. Using the program without the 5-10% additions to the payments, the same debt would be paid off in 8.5 years with an interest savings of approximately $2387. Additionally, investing the same monthly payment after the credit card was paid off for the next 10.5 years (making 19 years total) at a return of 12% would yield approximately $10682.

Interest is a powerful tool, used by creditors every day to their advantage. It is simple to allow interest to work in your favor if you properly implement the right program to harness it. recommends following these steps to start interest working for you instead of against you.

About the American Credit Foundation® is the Internet domain for American Credit Foundation, an IRS 501 (c)(3) non-profit consumer credit counseling organization. American Credit Foundation has assisted thousands of individuals and families with their financial situations by providing seminars, education, confidential counseling services, and, when applicable, by establishing debt management repayment plans. The Foundations credit counselors are certified through the National Institute for Financial Counseling Education. For more information, and free consumer resources visit

© 2005

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Mike Peterson


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