Holiday Debt Dig Out of the Hole By:Kristen Garrett

The New Year is here and you may be dealing with some holiday leftovers -- not just useless gifts or extra pounds, but leftover debt from gift giving and entertaining.

If you find yourself faced with holiday debt, there are some steps you can take to pay down your debt and get back on track with your finances.

The first step is to assess your expenses and create a monthly budget. Your budget should include all expenses you incur during the month such as mortgage or rent payments, utilities, food, transportation and entertainment.

Also, budget for periodic expenses such as insurance premiums, taxes or new tires for your car. For example, if your car insurance premium is $1,200, set aside $100 each month.

Once you've created your budget, prioritize your expenditures. Determine what items in your budget are necessities and what items are wants. Estimate the costs of your expenses, and set spending limits where you can.

If you have money leftover after your monthly expenses are paid, put that money towards your debt, and put some into savings if it's possible. Pay down any high interest credit cards or loans first. This will save you money over time.

If you don't have money left over after your monthly expenses are paid, or if you would like to have more money to put towards your debt or savings, it's time to figure out where you can trim from your budget.

If you go out to lunch during the work week, try to take your lunch more often. Bring coffee or tea from home instead of stopping to buy one every day. Reduce your entertainment expenses by looking for free or inexpensive events in your area such as free museums or reduced price days at local attractions.

Get into the habit of comparison shopping. Check the prices of large and smaller purchases at three different stores to find the best buy. You may also have to let go of your loyalty to a particular brand if another brand offers the same quality product at a lower cost.

Also, review your utility and insurance plans. Make sure you have the appropriate level of service or insurance coverage. For example, if you have a mobile phone calling plan with 500 minutes a month and you are using 700 minutes a month, you're paying for those extra 200 minutes over and above your monthly fee. You may be able to save money by switching to a plan that offers more minutes for less money than you're paying in overages.

Some other tips for managing your budget are:
* Balance your checkbook every month.
* Organize your bills and receipts, and keep them all in one location.
* Pay all of your bills on time. Late fees are costly and quickly derail your budget.
* Create a cash flow calendar that lists all of your expenses and their due dates.

It's also important to recognize the early warning signs of debt trouble, such as getting behind on basic payments like your utilities, skipping some debt payments to make others and using credit to buy items you should be able to buy with cash, like groceries.

If you've made all possible adjustments to your budget, and you see signs of a debt crisis, get help. Don't be afraid to call your creditors as soon as you realize you're going to have problems. Explain your situation and what you are doing to meet your debt obligations. You may be able to negotiate your next payment or a lower interest rate.

You can also call a credit counseling agency for help. Make sure you research credit counseling services carefully before you choose an agency. Find out if the agency offers money management advice without obligating you to sign up for a debt management program. Find out what fees the agency charges, what services they offer and what national affiliations they have.

Find out if the credit counseling agency holds membership with National Foundation for Credit Counseling, the umbrella association for over 115 credit counseling agencies nation-wide that promotes the highest member standards for credit counseling. You can visit the NFCC's web site for a list of member agencies.

Know that you can get ahead financially even if you are currently overwhelmed with a financial crisis or shortfall. The most important thing is to take action and take control of your financial situation.

Kristen Garrett is the public relations coordinator for Advantage Credit Counseling Service, a 501(c)(3) non-profit community agency based in Pittsburgh, Pa. http://advantageccs.org

Common Debt Settlement Mistakes By:Dan Delgado

Many times in order to speed up the process on negotiations clients will try dealing with creditors and collectors on their own, this is a big mistake. If fees are being paid for someone else to do the work, let them. The professional debt negotiator will only bring a client into a negotiation only when it is absolutely necessary. Many deals on settlements have been damaged by clients thinking they can do better than their negotiator can.

Knowing what to say and what to do in certain situations is completely foreign to most people when it comes to negotiating debt. The language and terms used are not common everyday language, especially when dealing with a legal matter one can end up in more trouble by getting in the way of a negotiation. It takes time to negotiate debt, patience must be had by all parties including, client, collector and negotiator.

The rules and expectations explained by the debt relief agency must be followed at all times in order to bring in successful settlements. Client and negotiator make up a team put together to obtain the best results possible when negotiating debt. The negotiator from time to time will ask the client to provide information that will make his work easier, the client will be looked upon as a great source of information. The client's main responsibility is to continue to accumulate funds for future settlements.

All clients must keep in constant conversation with their negotiator or account representative. Client must always be available to receive and answer messages from their account representative, this will help speed up the settlement process. Proactive clients find a way to stay in touch, those that want to get rid of debt as soon as possible will always be there when needed. These people have a better chance at finishing a debt relief program than the ones trying to help out by negotiating on their own.

On rare occasions clients will be summoned by their negotiators to join in on a negotiation, more often than not this participation is just limited to the client telling the collector they are giving permission to their negotiator to speak to them. No more no less. Other times a client may be involved is to make payment on an agreed settlement as some collectors will not allow a third party to make payment on someone elses' behalf. This is something I like to do myself for my clients own peace of mind, having them know the settlement is real will allow them to sleep better at night.

Dan Delgado is an active unsecured debt negotiator, he has experience negotiating personal as well as business debt. For more information please visit http://www.pemperandgartle.com

Are There Funds Available By:Dan Delgado

Funds availability is the main reason people fall into debt. This lack of funds may be a direct result of a job loss, medical condition, business failure, etc.. Falling behind loans is not something most people plan or want to do, life happens, we must go on. A plan has to be set into place in order to eliminate debt that has accumulated over the years. Joining a reputable debt relief program is the first step to getting back into a sound financial status. Saving money in order to negotiate unpaid accounts is the next step. Without funds availability joining a debt relief program is not going to do much, it would be like playing football without a ball. Knowing funds will become available makes it easier to negotiate.

Funds can come in the form of loans from family members, pension plans, stocks, selling some prized toys. What we must understand is the real urgency of coming up with money. If we are sick, what do we do? We go to the doctor. If we want to settle debt, what must we come up with? Money!

In my years of debt negotiating I have come across unbelievable offers from creditors and collectors only to have my clients say to me there are no funds available. Those wonderful settlement offers cannot be held for ever. There is a window of opportunity that must be taken advantage of when negotiating debt. Funds must be made available as fast as possible, like getting a heart for a heart transplant patient. It is that essential, money, must be available in order to negotiate debt.

No one can fool anyone into making them believe their creditors will wait around forever to receive their money. Please wake up. If anyone ever calls a debt relief agency and they are told they have 36,46,56 months to settle their debt, this agency is absolutely lying to you.

Not all debt being held at one time has to be placed in a debt settlement program. Be smart. Negotiate a few accounts at a time, give yourself time to come up with funds. That is why I always stress to stay away from the retainer fee charging companies, of course they want you to bring all of the debt into the program, only reason is to charge a larger retainer fee. Find some agency that will help you negotiate one account at a time. Remember this will allow you more time to come up with funds.

Excellent settlements come to those who act smart. The smart way to negotiate is to pick and choose which accounts to negotiate on first. Find out which credit card companies are easier to work with, negotiate on your smaller balances first, be proactive, investigate. Have a garage sale, try getting a loan on property owned, sell the extra car sitting in the driveway, sell cookies at school, but just do not sit at home feeling sorry. Only action will get people out of debt, those sitting at home waiting for their debt to disappear will have to wake up to a cruel reality someday. There is hope, reach for help but most important help thyself!

Dan Delgado is an active unsecured debt negotiator, he has experience negotiating personal as well as business debt. For more information please visit http://www.pemperandgartle.com