Eliminating Debt Legally

by : Jim Vrana

Memorial Day has now passed, throwing us into the time of year where the weather allows us to enjoy picnics and the outdoor bar-b-q. Both of these summertime activities revolve around eating. As food prices continue to rise, even this innocent seasonal fun is putting an extra strain on our budgets.

These high food prices are probably here to stay, just as the high cost of energy is here to stay. After all, it takes energy to produce, package, and ship food all over the world.

Unfortunately, too many Americans are paying for their food with their credit cards, the same way they pay for everything else. Credit is supposed to be used for the large purchases. Items we should be able to afford, just can't pay for all at once.

Food however, is not a one-time large purchase. A major sign of a personal financial struggle is when our most basic necessities must be purchased on credit. If next week's grocery bill is also put on a credit card, as well as the week after that, then you have a cycle of debt that will never end. And the ever-ballooning credit card balances will never come down. This puts an even greater burden on people who can barely afford to pay the monthly minimum.

Using a credit card for daily purchases could be just a matter of convenience, so a person would not need to carry around too much cash. If this is the case, then a debit card from your bank should be used. A debit card bearing a Visa or MasterCard logo can be used just like a credit card, except there will be no surprise balance due on the next monthly statement. Also there will not be any interest charges added to the purchases.

If a family relies on credit for their everyday purchases and basic necessities, then they must realize the trouble they are in. They must get some guidance on how to live within their monthly income. If they don't, the credit will eventually run out, and their financial lives will collapse.

When the credit card balances become out of control, the consumer begins to search for their best debt relief. For many, refinancing their house is no longer an option as housing prices continue to decline. Even bankruptcy is no longer an option.

So consumers are now turning to debt elimination. With this program, people can legally walk away from 100% of that debt, without bankruptcy, consolidation, or refinancing. Their credit scores are also higher after completing this process. This allows for lower interest rates for future purchases of items that credit is really needed for, like autos and homes.

In addition, the education a person receives from a good elimination program will help ensure that the cycle of debt will never be entered into again.

Buying food for a family is certainly not irresponsible spending. For everyone, it is a mandatory burden. When the debt burden becomes overwhelming, a true debt elimination is gives people a fresh start on their financial lives. A "do-over" you might call it. Without the residual of bad credit or shame of bankruptcy.