In our world of dizzying change, nothing is more true than the 
time honored statement that circumstances always change.
 
No where is this more true than with financial issues.
 
Have you ever borrowed money, or charged up the VISA card at 
Christmas, all the while telling yourself that you would pay 
everything off with a coming tax refund or bonus?
 
Sound familiar. And then what happens when the bonus money 
arrives?
 
Let me guess - circumstances changed, the car needed brakes (or 
the kids needed braces, etc), and the VISA debt and interest 
charges keeps piling up.

 
Unless you have a plan, you will always be caught in the 
unpredictable grip of "changing circumstances".

This is a slippery slope that can very quickly become serious 
financial stress. Consider the fact that Americans are declaring 
bankruptcy at record rates. One in every 100 families is affected
by a bankruptcy. 
 
I was on this slope 10 years ago. Declaring personal bankruptcy 
and filing for divorce went hand in hand.
 
One of the most insightful moments of the process was preparing 
a written log for the trustee of all of our spending for the 5 
years leading up to bankruptcy.
 
While all of the individual decisions made sense in the moments 
that they were made, they looked totally foolish in the context 
of the "bigger picture".
 
In other words, constantly changing circumstances drove us off 
our financial roadmap.
 

Consider this five step plan for getting on, and staying with, 
your financial roadmap.

Step No. 1: Make a list of what you owe & prioritize:  Put all 
     your bills in a pile. Then list your debts in order, 
     starting with the largest balance first.  Then prioritize 
     your repayments (ie paying down the highest interest rate 
     first).

Step No. 2: Eliminate credit cards and don't roll over balances. 
     Once paid off, notify the company that you want to close 
     the account. 
 
Step No. 3: Make a spending plan. Change your free-spending 
     ways. Track the money that's coming in and going out. Use 
     a debit card instead of your credit card. Download your 
     bank transactions into a computer program for easy 
     categorizing. 

Step No. 4: Be careful about the equity in your home. Billions 
     of dollars worth of equity has been withdrawn from millions 
     of homes in the last few years. But many people pay down 
     credit cards only to charge them up again - and then you 
     don't have the safety net of the equity in your home.
 
Step No. 5: Get help. For some people, the problem of 
     overspending is a psychological one. Spending can become 
     a habit that's as difficult to kick as alcohol, drugs or 
     gambling. Sometimes, it's due to circumstances they truly 
     could not avoid: medical bills or divorce or loss of a 
     job.


You can talk with a credit counselor on a private basis. It only 
appears on your credit report if you enter their debt repayment 
program.
 
As you consider your finances, remember that Americans are now 
carrying $683 billion in revolving credit card debt. 47% of the 
people who paid less than the full amount on their credit card 
bills in a recent month, made only the minimum payment due. 
 
The good news is that planning and professional help will 
definitely help you turn things around.
 
Case in point: I went from bankrupt with zero assets living in a 
boarding house, to gainfully employed, running my own home based 
business, with 2 houses and excellent re-established credit.
 
In other words, it can be done. 

Pay-off-debt-now.com is run by Drew Harris and is a one-stop-shop
web portal for those facing crushing debt issues. Multiple pages 
of resources, referrals and tools. Expert advice on credit cards, 
loans and avoiding bankruptcy. http://tinyurl.com/4bbum