This is a fascinating story about a young student’s battle with credit card collections. Sadly, her story is common now a days. More and more Americans are getting themselves deeper and deeper into debt.

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What is disturbing is the unethical and questionable tactics many collection agencies use to extort money from debtors.

If you feel that you are being abused by a creditor or collection agency, refer to the Fair Debt Collection Practices Act.

1. Get your whole family involved. Agree on a budget up monitor your progress
2. Stay disciplined and try to make budgeting a part of your daily routine
3. Start your new budget at the right time. It’s hard to start new budget during the holidays, instead it’s a lot easier to start it during the new year.
4. Find a budgeting system that fits your needs. For example, you can use special budgeting software such as Quicken .  Quicken is a perfect personal finance software designed to get you ahead of your budget.
5. Distinguish between expenses that are “wants” and “needs”. Wants include shopping for shoes, a bigger TV, or a vacation. Needs include groceries, gas, and utilities.
6. Build rewards into your budget. Set yourself a goal, and if you meet your goal, reward yourself with a dinner out or a movie.
7. Avoid using credit cards to pay for everyday expenses:. It may seem like you’re spending less, but your credit card debt will continue to increase.

Credit Counseling companies can offer a great service. They can help you create a debt management program to help you eliminate or reduce your outstanding debt.

However, there are many credit counseling services that are fraudulent. Learn to protect yourself from credit counseling scams.

Here are a few things to look out for when choosing a credit counseling service.

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How easy is it to eliminate credit card debt. If you are determined to get yourself out of the money pit, then “Where there is will, there is way”.

No matter what method you use to eliminate your credit card debt, no matter what debt assistance company you apply for, your will power is vital to your success. That is, IF YOU WANT TO eliminate your credit card debt. If you are ready to take control of your finances and take responsibility of your actions then it is eliminating your credit card debt is relatively easy to do.

Your will power and drive is what will help you control your spending. Your determination will help you make wise choices and analyze your current financial situation. While a credit counselor can help you plan a budget, you are the one who will ultimately have to carry it out.

You are responsible for every aspect of your credit card debt elimination. One way of strengthening your will power, is to imagine how happy your life will be after your debt is gone. Imagine the freedom that you will get after you eliminate credit card debt.

Not only that, but just think about all these good things and build your confidence and your will power to eliminate credit card debt. You will be amazed at how much you can do once you set your mind to it.

Remember “Where there is will, there is way”.

Many people face a financial crisis some time in their lives. Whether the crisis is caused by personal or family illness, the loss of a job, or overspending, it can seem overwhelming. But often, it can be controlled. If your financial situation has spiraled out of control, there are things you can do to get your life back on track.

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Secured debts and unsecured debts. What is the difference between these two types of debt, and what does it mean for you as a debtor?

With a secured debt, collateral is promised if the debtor can’t make payments or defaults on the loan. Collateral is a piece of property, such as an automobile or a home. You will not be able to settle these debts, as the creditor will simply accept the promised property as the “settlement.” In other words your property will be repossessed.

With unsecured debts, there is nothing attached to the loan promised as repayment. Unsecured loans are typically given to people with good credit, because they have a good credit history. These are the type of debts that a creditor is willing to settle or negotiate. Unsecured debts include medical bills, credit cards, and personal loans.

Life without a credit card is possible, it just takes discipline and patience.

I am a firm believer that you don’t need a credit card to enjoy the finer things in life. Five years ago, my wife and I decided to tear up all of our cards to combat the growing debt problems we were facing. Sure, it’s been tough to live with out credit, but we’re managing just fine.

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