DebtStrength.com

Paying Off Debt 101

2009-06-18T10:19:00.001-04:00

What is the simplest way to pay off my debt?

This is a common question most people ask a financial adviser, banker or themselves.

Unfortunately and fortunately there a number of simple ways to pay off your debt. The reason I say unfortunately and fortunately is that it gives everyone hope. Because if there were only one way and you just never could do that one way you would always be in debt.

Simple way #1 is to consolidate all your bills into one payment. Usually you would save some money. Then at that point you should continue to make the same payment.

For example let’s say before the consolidation loan you were paying $900 on all your bills. After the loan your new payment would be $700. The simplest thing to do is to continue to pay $900 on the new loan. This way you will be accelerating the pay off of you bills.

Another reason a bill consolidation loan in good is that usually you are lowering your overall interest rate since some bills will be higher and some lower than your new interest rate.

Simple way #2 is to start paying extra on one bill. This is commonly called Debt Stacking. With simple way #2 you continue to make minimum on all your bills except one. Take all the additional money you are paying on other bills or what you can afford and pay that on one bill. Usually this extra money should go on the lowest balance, not the highest bill or the highest interest rate.

What we are attempting to do with a debt stacking plan is to free up more money the fastest or quickest way possible. This is not accomplished by paying on the highest balance since most likely it would take years to pay off instead on months on a smaller balance.

That’s all for now. Check back again for additional simple ideas to pay off your debt.

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Your Magic Wand for Debt Elimination

2009-06-02T10:21:00.003-04:00

What if you could wave a magic wand and all your debt is gone? Wouldn’t that be nice? A little wave, maybe a couple words and all your debt is gone. What type of vacations could you now afford if you had zero debt? Would you be able to send your kids to a better school or college?

It is important to take a look at what credit card debt is NOT allowing you to do. If you had an extra $500 a month would this help with your lifestyle or retire earlier? Let’s take a look at a plan that could save you a lot of money: The Debt Stacking Magic Wand

There is one magic wand and that would be to form a debt plan. Now if you did have a magic wand that’s probably what it would produce. BAM. A debt freedom plan that would show you step by step how to elminate debt quickly and effectively.

One of the best plans is a debt stacking plan. All you do is attack one bill at a time. It could be a department store card, a Visa or MasterCard or a car loan. Whatever bill you look to payoff first the most important part is to only pay the minimum on the rest of the bills.

Usually the best bill to attack first is the one with the lowest balance since it can free up more money quicker than higher balances. Some people think paying off the highest balance makes the most sense since they are paying the most interest on that bill. However, usually the smaller balances will have a longer pay off period than some larger balances.

I know this doesn’t seem logical, but trust me it works. A true debt stacking plan would involve paying more than the minimum on one bill. Hopefully you can pay more than $100 a month towards a plan. Keep paying the $100 extra on that first bill until it is paid off. Then take the $100 plus the minimum on that bill you were paying, say it was $40.

On the next bill you would take the entire $140 plus its’ minimum payment, say $55 . On this bill you would pay a total of $195 until that balance is elminated. Keep doing the same with the rest of the bills.

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The Two Choices We Face by Jim Rohn

2009-06-01T19:39:00.003-04:00

Each of us has two distinct choices to make about what we will do with our lives. The first choice we can make is to be less than we have the capacity to be. To earn less. To have less. To read less and think less. To try less and discipline ourselves less. These are the choices that lead to an empty life. These are the choices that, once made, lead to a life of constant apprehension instead of a life of wondrous anticipation.

And the second choice? To do it all! To become all that we can possibly be. To read every book that we possibly can. To earn as much as we possibly can. To give and share as much as we possibly can. To strive and produce and accomplish as much as we possibly can. All of us have the choice.

To do or not to do. To be or not to be. To be all or to be less or to be nothing at all.

Like the tree, it would be a worthy challenge for us all to stretch upward and outward to the full measure of our capabilities. Why not do all that we can, every moment that we can, the best that we can, for as long as we can?

Our ultimate life objective should be to create as much as our talent and ability and desire will permit. To settle for doing less than we could do is to fail in this worthiest of undertakings.

Results are the best measurement of human progress. Not conversation. Not explanation. Not justification. Results! And if our results are less than our potential suggests that they should be, then we must strive to become more today than we were the day before. The greatest rewards are always reserved for those who bring great value to themselves and the world around them as a result of who and what they have become.

To Your Success,
Jim Rohn

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Receive Free Credit Card eBook Today

2009-05-31T09:30:00.000-04:00

I am giving away for free my book “How to Beat Banks & Credit Cards at the Money Game.” Visit my site http://www.debtstrength.com to receive this great book.

If you have credit card debt and want to learn how to beat banks at the money game this is the book for you.

I take you through what goes into your credit score and how you can improve your score. I have worked with thousands of clients over the years and have found some common mistakes people make regarding their credit score.

I want to help you lower the amount banks earn from your mortgage, credit cards and car loans. Congress thinks that the new rules they passed are going to help, but not for another 9 months.

Even after the changes we still owe over $960 BILLION on credit card alone. That was BILLIONS, almost a TRILLION DOLLARS.

Take advantage of this special offer today. I have sold it regularly for $17, but I want to get this information in your hands.

Thanks

Teddy Danfield

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Fixed Rate Credit Cards: Do They Exist?

2009-04-10T11:14:00.000-04:00

Over the years I have many clients tell me about this great fixed rate credit card at5.99% or lower. They didn’t want to put credit card in mortgage since they had this low rate on their credit card. I would tell them that at any point a credit card company can change their terms even if they weren’t late.

Well jump forward to the present time and I told them the truth. Many major credit card companies from Citi, Chase and Bank of America are now raising rates on people who had low promotional rates. Most of the rates are going from single digits to double digits of 12% or higher.

Why are banks doing this to good paying customers? The banks claim it is to reduce their financial exposure from clients. How does that make sense when their customers payments have to increase to make up for the higher interest rate? It simply is a way to make more money.

Remember, currently banks can borrow money from the Federal Reserve at almost 0%. Now they are lending the money at over 10x the rate they have to pay back. Keep in mind banks make money from lending people your money. This is Finance 101: Customer deposits money to banks. Banks loan money to people and earn interest. Banks pay customer very little interest or in this case the Federal Reserve.

A news article said that Wells Fargo earned over $4 Billion dollars this last quarter. Why or How? They could borrow money for almost free from the Federal Reserve and lend it at 5%, 8% , 12% or more. It is very easy to earn a lot of money from interest.

If you owe any money to a credit card company or bank you owe it to yourself to buy my book, “How To Beat Banks & Credit Cards At the Money Game.” It is almost free considering how much money you will save over the years. I have had clients implement the ideas in my book and save over $40,000 or more in finance charges. Most of my clients had a goal of being debt free and most have accomplished that goal.

If you are sick and tired of being taken advantage of by banks and credit cards you need to do something about it TODAY not tomorrow.

Hope this helps.

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Grace Period & Credit Cards

2009-03-31T15:54:00.001-04:00

Grace Period in its simplist terms would be how soon interest starts building on purchases. A Grace Period of 0 days would mean interest starts the next day after the purchase. So if you bought a new pair of pants today for $100 there would be interest owed by the time you receive your statement. If you only paid the $100 there still would be a balance.

For easy math let’s say your interest is 12% which means over 12 months you would pay $12 in interest on the $100 purchase. Once again this assumes you continue to owe $100 for the entire year. In this example you would have $1 of interest on the pair of pants you bought. This is an example of a Grace Period of 0 days. Most credit cards have more than 0 days.

A good Grace Period would be at least 20 days for new purchases. Where do you find the Grace Period on a new account application? It would be found on the back of your application. There is a universal box which shows or explains the details of the credit card. One box discloses the Grace Period for that credit card.

The longer the Grace Period the better for you the customer. I have seen this vary from company to company. I’m sure you have credit cards that you have no idea of the Grace Period on most cards. An easy solution is to contact your credit company for that information. They should be willing to let you know the number of days you have for new purchases. If not, you may want to find a new credit card.

I hope this helps when you are reviewing your credit card applications. Grace Period is usually something no one looks at since they are usually most concerned about the interest rate.

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Credit Card Same As Cash

2009-03-28T16:39:00.002-04:00

Over the years same as cash purchases has become very popular. Same as cash offers come from appliance, computer, furniture and home improvement stores. What you need to review with these offers is how soon do you have to start making payments.

I have seen offers where payments are deferred for up to two years. Many people think this is great since you don't have to make any payments for two whole years. However, interest is building on the balance.

For example you purchase a new furniture set from you local furniture store for $1,500. The offer states NO payments for two years. The only problem is the interest rate is probably 19.99% or higher. What this means to you the consumer is that you better pay off that entire $1,500 before that 24th month. If not, the new balance will be $1,500 plus the accrued interest. This can quite significant if you haven't made any payments the previous two years.

With deferring your payments for two years the local furniture store or actually the finance company is hoping you won't pay off the balance in two years. The interest charged is how the finance company will earn their money.

The second type of same as cash offer would be no interest for two years as long as you make a monthly payment. How this offers differs from the first is that some type of minimum payment is required to continue the offer. If you happen to miss a payment the offer may no longer be valid. Whether or not missing a payment will cause such a scenario is based on the company. Always read the fine print.

The monthly payment requirement is actually a good feature since you are required to build some type of payment in your budget. Over the same as cash offer you would be lowering your balance. Just like the first offer the interest will continue to accrue on the unpaid balance.

Same as cash offers are very good ways to save some money on finance charges, but you must have knowledge of what happens after the offer expires. If you happen not to pay off the entire balance by the end of the offer period the accrued interest will be added to your balance.

Let's use the same $1,500 I used previously. Suppose you paid only $1,300 on the $1,500 after the two years. According to most same as cash offers ALL the interest built up over the previous 24 months is added to the remaining balance of $200. This amount can be pretty large and the reason why the finance company made the offer in the first place.

The finance company realizes a certain will pay off the entire balance and some will not. You need to make sure you are not one of the one's left with a balance. To make sure this does not happen to you definitely should divide your balance by the number of months you received the same as cash offer and subtract two months. For example the offer is for 24 months you would divide your balance by 22 months. The reason should be obvious. You don't want to come to the 24 month with a large balance still due.

I hope this helps you when you are looking at making a purchase of a new TV, computer or furniture.

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Credit Card Payments

2009-03-23T14:48:00.002-04:00

Why do credit cards seem to take so long to pay off? I've met with clients who are stunned that it can take over 15 years to pay off a simple $4,000 balance. They feel by paying a $10 to $15 more than the minimum should cut the pay off date significantly. It does only about 15 years.

What you as the consumer need to do is look at each month's statement and review how much of your payment goes to interest and principal. You may astonished that only $20 or $25 of your $75 amount actually goes to the balance or principal.

Credit card companies really like all their customers who only pay the minimum every month. If you happen to be one of the minimum payers out there, your balance will pay off in about 35 years. Not good.

Another way we increase our pay off dates is to continue to use the credit card for monthly purchases. I had a client each month charge their satellite bill on a Visa and they wondered why the balance wasn't getting any lower. They were charging an additional $125 a month, but only paying $200 a month. When I reviewed several bills I noticed the balance was increasing since the $125 charge and the interest was actually more than the payment. Not good.

What made this even worse was they had the money to pay each month it was just out of convenience they used their Visa. Now they pay out of their checking account with a direct debit.

You can save a lot of money just following some simple steps, but steps we are not taught in school or by our parents. I go over many great tips in my book you can purchase at debtstrength.com The cost of the book can be recouped just by implementing only one idea.

Once again knowledge is power. Increase your Debt Strength today.

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Believe It's Possible by Vic Johnson

2009-03-20T22:11:00.003-04:00

This is a great article by Vic Johnson

"Belief is the basis of all action, and, this being so, the belief that dominates the hearts or mind is shown in the life." - Above Life's Turmoil

You will rarely attempt something you don't believe possible and you will 'Never' give 100% of your ability to something you don't believe in.

Some years ago I was listening to a friend speaking to a business audience. She quoted a teaching by David Schwartz from 'the Magic of Thinking Big' that rocked my life. She said, "The size of your success is determined by the size of you belief." Now that was the first personal development book I ever read and I've read it at least 20 times since. I'm sure that I had heard that concept many times before that night. But it impacted me so much that I wrote it down and must have looked at it a hundred times or more in the thirty days after that.

I spent the next few months focused on strengthening my belief in myself and in what I wanted to do. I took to heart what Wayne Dyer wrote in You'll See it When You believe It: "Work each day on you thoughts rather than concentrating on your behavior. It is your thinking that creates the feeling that you have and ultimately your actions as well." So I worked each day on my beliefs by constantly affirming myself using written and verbal affirmations. The years since have been an incredible rocket ride.

One of the best known stories about the power of belief is about Roger Bannister, the first person to run a mile in under four minutes. Before his accomplishment it was generally believed that the human body was incapable of such a feat. But as soon as he had done it, scores of others accomplished the same thing. Thousands have done so since and today it's not uncommon for it to be done by a talented high-schooler. Did the human body change so that this could be done? No. but the human belief system did!

Nightingale-Conant says Napoleon Hill is considered to have influenced more people into success than any other person in history. And his most quoted line from Think and Grow Rich describes the power of belief: "Whatever your mind can conceive and believe, it can achieve." Just believing that statement, truly believing it deep down inside, is a bold step toward living your dreams.

Lisa Jimenez, in her great book Conquer Fear! Writes, "change your beliefs and you change your behavior. Change your behaviors and you change your results. Change your results and you change your life."

And that's worth thinking about.

By Vic Johnson

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Credit Card Debt

2009-03-19T10:37:00.004-04:00

We currently owe $957 Billion or more on credit cards. One of the best ways to eliminate credit card debt or any kind of debt is through debt stacking. I have made several posts about debt stacking in the past.

I have several resources you can use to set up your very own debt stacking plan.

1. I the book "How to Beat Banks and Credit Cards at the Money Game"
2. Is a finance program you can use to set up a debt stacking plan.

Both are excellent to help you accomplish your financial goals through debt stacking.

How to use debt stacking? It is very easy you take all the money you are paying on your credit cards or bills over the required minimum. Most people usually pay $20 to $50 extra on a couple bills to attempt to get out of debt.

The little secret is that this is not very efficient. It will work, but not as well as debt stacking. I was with a client once and they paid off one car and wanted to use the extra $300 to pay off the other car. However, this car still had a balance of $12,500. They had several credit cards with a with less than $2000. Debt stacking looks to free up money by paying down lower balances first. By following a plan like this can increase the amount to pay on other bills.

The best way to do this is to purchase a software product to accomplish a debt stacking plan. The amount you pay is minimal considering the amount of interest you will save on your credit cards, sometimes $20,000 or more.

The program will show exactly how much you are currently paying by following your plan. What makes this program unique is that it will take the extra money you were paying and give you an exact plan for you to follow.

I have used a program similar to this one and it is almost exactly the same. The only difference is that is won't charge you a single dime to update the plan. Follow this link to the program. CLICK HERE

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Profits Are Better Than Wages

2009-03-18T19:59:00.005-04:00

My mentor, when I was 25 years old, dropped a phrase on me that changed my life forever when he said, "profits are better than wages. Wages will make you a living, profits can make you a fortune." You know it is a bit difficult to get rich on wages, but anybody can get rich on profits. Profits change your whole attitude, even if you start part-time. Whether it's part time on your entrepreneurial business, network marketing company or service business.

It can be a landscape business in the summer or hanging Christmas lights in the winter. It can be training, consulting or tutoring. It can be your hobby such as painting, writing, crafts, woodworking, computers or cooking. But once you start investing even part time effort into your own business, you will find how much more exciting it is to get up in the morning and go to work on your fortune, even if you're only spending a few hours a week doing it.

How empowering it is to be able to go to work on your fortune every day rather than going to work to pay the rent. Now - it is noble to go to work to pay the rent, but if you could also parcel out part of your time - go to work to make your fortune. Your whole attitude changes; your spirit changes. It is in your voice. It is in your face. It is in your gestures. And then you can say, "I am now working full-time on my job and part-time on my fortune because I found a way to make profits." Wow!

And I will know what you mean.

To Your Success,
Jim Rohn

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Credit Card Rate VS Investment Rate

2009-03-17T09:23:00.002-04:00

With the stock market in a shambles and your retirement account hurting you may want to take a look at your credit cards to increase your rate of return.

What do I mean by that?

Well, quite simply you have something that does have a guaranteed rate of return. Unfortunately for you it does not benefit you. That guaranteed rate is on your credit card. Think for a minute, what is the current rate on your credit card? Do you have a credit card at 16.99% who is getting that rate? Simple, your credit card company.

Your credit card is the only guaranteed rate of return you have in your control. At this time you definitely should look at ways to eliminate some of your credit card debt. The stock market will come back at some point in time, hopefully pretty soon.

That being said if you want to have more to invest in the future you need to take steps today to position yourself for that opportunity. Imagine for a moment not having to pay that $150 credit card payment and instead put that money into an IRA for your future.

Why should you continue to pay your credit card companies a guaranteed rate of return? I'm sure you'd like to guarantee yourself a 16.99% rate of return wouldn't you? You need to look at my book for some real techniques to reduce your interest cost.

Once again at this time it would be wise to start reducing your credit card debt and then you will have more money to invest later.

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Credit Card Minimum Payments

2009-03-16T14:18:00.002-04:00

I was reading a news story today regarding how some credit card companies are increasing the minimum payment percentage. Historically most credit card companies have required at least a 2% of your current balance as the minimum payments. Some such as Chase are going to increase the percentage to 5% of the current balance.

Now this is good and bad. The good part is it will eliminate the 30 years to pay off a credit card and save a lot of interest. Most credit cards if you pay the way they set the payment schedule could take up to 30 year to pay off a small $3,000 balance. That's the good news.

The bad news is if you are currently living paycheck to paycheck you may not be able to make the payment. For example, say you owe $5,000 times 2% would be $100. The new payment would be $5,000 times 5% equal to $250.

I'm not sure how many people could afford an extra $150 today or any time without some planning ahead of time. If all of a sudden you open your next bill and you see your new minimum payment doubled or tripled it would probably effect your budget.

As I said in my book that being debt free is key to reaching your financial goals. However, not if you did not plan for such a large increase. This is definitely something you need to be aware of on your next couple statement. Chase is a large company and I can see more credit card companies following their lead.

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Enterprise Is Better Than Ease

2009-03-15T19:24:00.001-04:00

I really like this article by Jim Rohn

If we are involved in a project, how hard should we work at it? How much time should we put in?

Our philosophy about activity and our attitude about hard work will affect the quality of our lives. What we decide about the rightful ratio of labor to rest will establish a certain work ethic. That work ethic - our attitude about the amount of labor we are willing to commit to future fortune - will determine how substantial or how meager that fortune turns out to be.

Enterprise is always better than ease. Every time we choose to do less than we could, this error in judgment has an effect on our self-confidence. Repeated every day, we soon find ourselves not only doing less than we should, but also being less than we could. The accumulative effect of this error in judgment can be devastating.

--- FORTUNATELY, IT IS EASY TO REVERSE THE PROCESS ---

Any day we choose we can develop a new discipline of doing rather than neglecting. Every time we choose action over ease or labor over rest, we develop an increasing level of self-worth, self-respect and self-confidence. In the final analysis, it is how we feel about ourselves that provides the greatest reward from any activity. It is not what we get that makes us valuable, it is what we become in the process of doing that brings value into our lives. It is activity that converts human dreams into human reality, and that conversion from idea into actuality gives us a personal value that can come from no other source.

So feel free to not only engage in enterprise, but also to enjoy it to it's fullest along with all the benefits that are soon to come!

To Your Success,
Jim Rohn

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Credit Card: Why We Still Need Them

2009-03-13T10:30:00.002-04:00

I have read a lot of articles lately on how people have to get rid of credit cards because they are the cause of so much financial ruin. I agree that credit card debt is a main cause for financial disaster for many families. However, we still need to have credit card debt.

For one thing if you want to travel usually you need to have a credit card just to reserve a hotel room or car rental. Now this could be a debit card tied to Visa or MasterCard, but you still need to have some type of credit card.

When I worked as a loan officer we usually liked to see on open credit card and one open installment loan. If someone applied for a loan without any open credit card or loan they were currently paying on they may not receive the best rate. Lack of credit history can really hurt someone when they are making a major purchase such as a home or car.

As I stated in previous postings about the importance of reviewing your credit report before making any major purchase. Usually you should obtain a credit report at least two or three months prior to purchase.

Credit cards can also help give us a buffer for unexpected car or home repairs. Most people do not have an extra $1000 or $2000 for a car or home repair. If you do not have any credit this can make getting approved for a loan when you need the money.

It is always good to have at least one or two credit cards available for emergencies. So if you are totally against credit cards you still need to have one for unexpected expenses.

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Keys to Finding Your Genius

2009-03-12T11:26:00.002-04:00

Change Your Beliefs. It is up to you to do the work of changing your beliefs. And when you do you will be opening up new worlds - literally! Win the thought battle, which will help you keep negative beliefs out and positive beliefs and thoughts in. Feed your mind with information that will change your belief. But also ask yourself if you are doing that with belief. The truth is that you have an amazing mind with a capacity for learning that is beyond your comprehension. You must believe this. And when you do, you will be unlocking the potential of your mind!

Get the Right Knowledge. Words--if they are not true--are meaningless. I hear children say, "I read it in a book." But is it true? Just because someone says it or writes it, doesn't mean it is true. As learners, we want to get the right knowledge, not just information or opinions. It is our job to seek out information and knowledge and then test it and run it through our minds to see if it is true, and if it can be rightfully applied to our lives in order to make them better and help us succeed. We need to weigh and measure what we learn in order to gain the right knowledge. And when we do, we will be unlocking the potential of our mind!

Become Passionate about Learning. This will take some work, but the only way to do it is to begin learning about things that have an immediate impact in your life. When you learn about a new financial concept that helps you earn money or get out of debt, that will get you fired up. When you learn about a way to communicate that helps you sell more product, that will energize you. When you learn about how to interact with your family in a healthy way and your relationships get better, that will inspire you! Become passionate about learning. And when you do, you will be unlocking the potential of your mind!

Discipline Yourself Through the Hard Work of Study. Learning will take work. Until someone comes up with modules that can plug into your mind and give you instant access to knowledge, you are on your own, and that takes work. The process of learning is a long one. Yes, we can speed it up, but it is still a process of reading, listening, reviewing, repetition, applying the knowledge, experiencing the outcomes, readjusting, etc. Simply put, that takes time. Slowly but surely, when you discipline yourself, you gain knowledge and learn. And when you do, you will be unlocking the potential of your mind!

Learning is possible, no matter what your age. You are never too young or too old. Your mind was created to learn and has a huge capacity to do so. This week, make a commitment to unlock the potential of your mind!

Jim Rohn

One of Jim's Best Products For accomplishing goals
http://oneyear.jimrohn.com?kbid=10123

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New Product to Reduce Credit Card Debt

2009-03-11T12:31:00.003-04:00

I just found this great new book to help eliminate debt in three to five years. I received product last week to see if it was really any good. Information seems to be very good.

The best part of the program is the debt stacking excel spreadsheet. Just plug in your current balances, rate and payments then the program will show exactly how much interest you will pay and the pay off date. I go over this in my book at one of the best ways to eliminate debt.

Debt stacking is not something your lender will show you since they are in the debt business. The cost of the program is wiped out by the money you will save in interest, potentially up to 100x the purchase price.

That is only a part of the program, but the best part in my opinion. Debt stacking is how I saved clients thousands of dollars of money.

Go to this link for more information http://tinyurl.com/csxo3f

Combine this program and my book would give an awesome one, two punch on eliminating debt and put more money back in your pocket.

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The High Road Principle

2009-03-10T19:57:00.002-04:00

Great Article from John Maxwell

The High Road Principle

By Dr. John C. Maxwell

"It's nothing personal; it's just business," is a commonly heard phrase in the workplace. However, I tend to disagree with anyone who tries to impersonalize business. At its heart, commerce is a human enterprise, founded upon relationships between people.

Most of us spend a majority of our waking hours in our business or at work, and our vocations endow our lives with meaning or purpose. When we devote ourselves to profession, we're giving a piece of who we are to our work. In that sense, business is deeply personal.

In the workplace, as in the rest of life, relationships get messy. Sooner or later, we will be mistreated. A boss will unjustly fault our performance, a partner will fail to honor an agreement, or a co-worker will cut us down in a meeting. Since business is personal, those instances hurt us, and unless dealt with correctly, they can derail us. As a leader, we have to commit to taking the high road when others, intentionally or unintentionally, wrong us.

Four Tips For Travelling the High Road

1) It's Not What Happens to You, but in You That Really Matters

During the Civil War, Confederate General W.H.C. Whiting envied rival general Robert E. Lee. Consequently, Whiting spread vicious rumors about Lee in an attempt to smear his character. Lee had the opportunity to get even, though. Jefferson Davis, President of the Confederacy, was considering Whiting for a promotion, and he consulted Lee's opinion of the general. Without hesitation, Lee endorsed and commended Whiting. The officers who witnessed the exchange were astonished. Afterward, one of them asked Lee if he had forgotten all of the slander Whiting had spread about him.

"I understand that the President wanted to know my opinion of Whiting, responded Lee, not his opinion of me." Lee did what high road travelers do. He refused to be dragged into a game of bickering and petty jealousies by treating another person with respect, even when that respect seemed unwarranted.

2) High Roaders See Their Own Need for Grace, Therefore They Extend It to Others

Let's face it; we all screw up from time to time. Each of us has quirks that we know can be annoying, and bad moments when we're not so pleasant to be around.
People who take the high road recognize their humanness, know that they need to be extended grace, and accordingly are more likely to extend it to others.

3) High Roaders Are Not Victims; They Choose to Serve Others

People who take the high road don't do so because it's the only available option. They don't do it by accident either: the high road goes uphill and takes more effort to travel. Instead, high roaders choose their path as a conscious act of service to others. By taking the high road, they drain animosity and bitterness out of relationships, serving to keep them open and productive.

Interestingly, in serving others, higher roaders benefit themselves, too. As the author of Proverbs wrote, "It is a man's glory to overlook an offense." When we maturely respond to a slight by showing forgiveness, we display admirable character that elevates us in the eyes of others.

4) High Roaders Set High Standards for Themselves Than Others Would

Abandoned as an infant, author James Michener never knew his biological parents. Fortunately, he was taken in and raised by a widow, and he adopted her surname. However, each time James published a book, he received nasty notes from one member of the Michener clan. The relative chastised James for taking on the Michener name, which this person felt the novelist had no right to use.

Despite being berated, Michener did agree with one statement his relative had made, "Who do you think you are, trying to be better than you are?" As James Michener professed, "I've spent my life trying to be better than I was, and I am a brother to all who share the same aspiration."

When we conduct ourselves according to the highest standard, we are less likely to become defensive and take the low road when others attack us. Once you've done all that you can, then you can let the noise of detractors roll off your back like rain.

Summary

In leadership, as in life, others will behave unkindly toward you. When ill-treated, don't retreat into a defensive mode or strike back in anger. Instead, take the high road and discover how rising above offenses frees you from petty arguments and adds to your reputation.

About

John C. Maxwell is an internationally recognized leadership expert, speaker, and author who has sold over 16 million books. His organizations have trained more than 2 million leaders worldwide. Dr. Maxwell is the founder of EQUIP and INJOY Stewardship Services. Every year he speaks to Fortune 500 companies, international government leaders, and audiences as diverse as the United States Military Academy at West Point, the National Football League, and ambassadors at the United Nations. A New York Times, Wall Street Journal, and Business Week best-selling author, Maxwell was named the World's Top Leadership Guru by Leadershipgurus.net. He was also one of only 25 authors and artists named to Amazon.com's 10th Anniversary Hall of Fame. Three of his books, The 21 Irrefutable Laws of Leadership, Developing the Leader Within You, and The 21 Indispensable Qualities of a Leader have each sold over a million copies.

Universal Default & Your Credit Card

2009-03-10T15:37:00.002-04:00

One great feature for the credit card companies is Universal Default. The same feature is completely and totally terrible for the customer. I can't say this with enough negative adjectives.

What is Universal Default? A sterile definition is we (credit card company) look at your general credit profile to determine the current rate for you our customer. Can you define general credit profile?

Certainly

When a credit card has Universal Default as a feature it means we (credit card company) look to see how you have been paying your bills to other companies. If they determine you have not been paying some other bills on time they reserve the right to increase your rate to the default rate.

What this actually means is if you are late on say your Visa with ABC Credit Card, but never late
on your MasterCard XYZ Credit Card, the XYZ can increase your rate to the default rate. It does not matter that you were on time with XYZ. Being late on one bill means you have been late on ALL YOUR BILLS!!!

This doesn't seem right or fair does it? Well, at one point a couple years ago nearly 60% of all credit cards had this feature. Presently some have ended Universal Default. However, you should call your credit card company to see if any credit cards you have still have this feature.

I am willing to bet there is still a good percentage still has this feature. Make sure you review any credit card applications for Universal Default. Regardless of rate you should avoid any card with Universal Default since you never know if you'll miss a payment or two and risk having your rate increased on a card you never were late.

Remember debt knowledge will increase your debt strength.

Visit http://debtstrength.com

Lowering Credit Card Limits

2009-03-09T11:56:00.003-04:00

I've been reading how more and more companies have been lowering credit card limits. I belong to a forum on credit card debt and it seems to very common nowadays.

In the past I would never have a client lower their credit limits because it can hurt their credit score. Now, instead of customers lowering credit limits, it is actually the credit card company.

Why is a lower limit bad? Well it hurts your credit utilization. Credit utilization is the part of your score that looks at your available credit vs. amount you owe on your credit card. For instance suppose you had a credit card with a credit card limit of $5,000 with a balance of $500. This would help your score.

Now if the credit card company lowered your limit to $1,000 this would lower your score. If you don't believe this will happen to you think again. Many people who pay their payments on time are having this happen to them.

I'm not talking about people with poor credit. This is happening across the board regardless of pay history or credit limits. You need to contact your credit card company if this happens to you. You want to request that your credit limit be restored.

If it's not restored you may want to pay off credit card and potentially look at closing account as a last resort.

Hope this helps.

Pick up my new book, "How to Beat Banks & Credit Cards At the Money Game" at my website http://debtstrength.com

I want you to improve your debt knowledge and therefore your debt strength

Visit http://debtstrength.com

Truth About Credit Card Debt

2009-03-08T19:44:00.003-04:00

Credit card debt is hurting so many people. It is the main reason why so many Americans won't be able to retire when they want. More and more people are starting to use a credit card for everyday purchases such as; gas, groceries and dining out at fast food restaurants.

Currently we owe over $957 Billion in credit card debt. All of that debt in earning interest for all the banks and credit card companies. The banks are the one's who actually own most of the major credit card companies we use everyday.

One tip I use to not use my credit card is to pay cash for everything. When I go to the grocery store I use cash. I even attempt not to use my debit card which is tied to my checking account. It is too easy to spend more money than I intend to when using any kind of credit card.

How many times has your spouse used the debit card tied to your bank account and did not tell you? This can create many household arguments which can easily be avoided by paying cash. I had a client use a credit card for buying gas when it was $4 a gallon (thankfully now $2). They did this out of convenience. Besides did you really like forking out $100 to fill up your gas tank?

Well after about 6 months of both spouses using a credit card for gas they had close to a $5,000 balance. Now at first they did have the intention to pay off the balance each month. They earned over $140,000 a year so money was not an issue. It did become an issue when all of a sudden they owed over $5,000 on credit card debt.

At that point they stopped charging gas and started paying cash. On the credit card debt they started to pay $500 a month to eliminate the bill as soon as possible.

It is very easy to build up credit card debt when you start using it for everyday purchases. If need be start carrying around only one credit card with say a $500 limit. A low limit charge card should cover any routine expenses if you happen not to have enough cash.

You are not going to beat the credit cards at the Money Game. You can use some techniques to your advantage.

Visit http://debtstrength.com and take a look at my book "How to Beat Banks & Credit Card at The Money Game"

Fixing Credit Card Mistakes

2009-03-08T14:38:00.001-04:00

A common complaint I have heard from clients is regarding late payments posted by the credit card company. The first advice is to contact the credit card company about the late payment to see if they can not report it late. Note: They do not report instantaneously to a credit bureau.

Usually it takes about 1 or 2 months for them to report. For example right now we are in the month of March. If you pulled your credit report most of your creditors still have not updated your report since January. There is a lag between the time you sent in your payment and the time it shows on the credit report.

That being said let's say you were late with a payment and it does show on your credit report as a late payment. What should you do?

First thing is to get a payment to them and try to get current as quick as possible. If you missed one payment you do have to pay two payment the next month. Just because you made a payment will not make your account current. You have to make this month's payment as well as the payment you missed and late fee possibly.

For example let's say you owed $150 as your minimum payment and you did not make the payment. Next month you will have to pay at least $300 and possibly the late fee. I know some creditors require you to pay the missed payment plus any late fee. You want to make sure you know the rules so your account will show current on your credit report as soon as possible.

Once your account is current, attempt to stay current as long as possible or when the account is paid off. A recent late payment will hurt your score more than a late payment, which is two years old. When a creditor reviews your account they will see a missed payment, but then how soon you were able to get the account current and stay current.

Teddy Danfield
Visit http://debtstrength.com

Grace Period On your Credit Card

2009-03-06T14:29:00.002-05:00

Grace Period? What is Grace Period? The easiest definition of Grace Period is how quickly will the interest meter start running on new purchases. I've seen some credit cards have 20 to 25 day Grace Period and some with 0.

Let me give you an example of 0 day Grace Period. If you go to the store today and buy a new pair of shoes for $100 when will the interest start. Answer today. If your buy something today on March 6 and your bill is due on March 26 you will be charged interest on the $100 from today until March 26 when your payment is received.

In this example your balance will not be paid off since there would be 20 days of interest owed on the $100.

The best advice I can give someone is to look for the longest Grace Period when applying for credit cards. Most offer a 20 day Grace Period. This is a key factor when you are using a credit card you intend to pay off every month.

I had some clients use a credit card for all their purchases of groceries, gas and other purchases during a month. When they would receive their bill they paid the entire balance off. Why did they do this since they had the cash? It was tied to a airline mileage club. Each year they usually received 3 or 4 free tickets by using the card to their advantage.

They did not care about the interest rate since it was 16.99% since they never carried a balance. Is this good for everyone? NO. You need to have the discipline and the income to do something like this every month.

Read more tips in my book "How to Beat Banks and Credit Cards At the Money Game" I want to help people increase their debt strength knowledge since that is the best way to become debt free and financially independent. Go to http://debtstrength.com

Teddy Danfield

Small Purchases Add Up

2009-03-05T16:31:00.005-05:00

Paying your bill at a store and then using same store credit card for more purchases. This is one of the most common mistakes I see people and I was very guilty of this offense.

Let me paint you a picture. Your bill is due at say Target or Kohl's and you forgot to send the bill. You decide that's ok, I'll just go and make the payment at the store. Now your trapped since going to the store can potentially lead to more purchases.

After making your $50 payment there are some sale items you decide you need to purchase. Going through the store you discover a couple items you also need to buy. Finally at the register you discover you don't have any cash to pay your $75 bill. No problem just use your credit card you just paid the $50.

Does this sound familiar? It should because accepting payments at the store is a great way to guarantee repeat business.

I don't know how many times myself or wife have gone to a store to pay a bill then walk out with more stuff.

If you have a goal of becoming debt free do yourself and favor. Pay your bill online or send it in the mail. Make up a calender for due dates for your credit cards. This also may force you to pay off your bills when you realize how many credit cards you pay each month.

Being debt free is going to be such a joy. I have one goal and that's to have only one bill. Uncle Sam. I'll gladly pay my taxes if I have no car, home or credit card payments.

http://www.debtstrength.com

Establishing or Re-Establishing Credit

2009-03-04T20:35:00.002-05:00

When I worked as a loan officer people in their early 20s had the most difficult time being approved for credit. The most common reason was due to lack of credit history.

To build or rebuild credit some of the easiest places to be approved for credit are department stores. Stores like Target, Dillard's, Best Buy, Old Navy. A store where you are not looking to buy thousands of dollars of merchandise.

Most stores will give someone young a credit limit of $300 to $500. Now the key to building credit is to charge something for maybe $50 to $100. The important step is not to pay off the balance right after you receive your first bill. Some people ie your parents will tell you that you should pay off the credit card in full each month to build your credit. They falsely believe showing that you never carry a balance is good.

However, they do not realize most creditors do not report for two or three months after an account is open. Charging $100 and then paying off the balance the next month never establishes a balance and therefore thecreditor will not report any activity to the credit bureau.
Not good.

No matter what any tells you this is what you need to do to establish a credit history.
1. Buy something $50 or more
2. Pay minimum payment even if only $10 each month
3. NEVER MISS A PAYMENT!!!
4. Pay minimum for three or four months
5. Then pay off balance after fourth month
5. Will show 4 on time payments on your credit report
6. You just established a credit rating!!!! Very GOOD

Now after doing this and you decide to charge something again for $100. NOW you should follow your parents advice about paying off your credit cards every month.

My book is now complete!!! Finally. Go to www.debtstrength.com to purchase.

Teddy Danfield