Winners and Losers

"She's a winner!" He's a real loser". We frequently hear people
labeled as winners or losers. We seem to instinctively know the
difference.

Many years ago, I saved a poem that discusses the difference between
winners and losers. I don't know who wrote it, but I'll tip my hat to
her or him, because the poem captured the essence of character that
distinguishes winners from losers. I'll share it with you now with my
thoughts.

BE A WINNER!

Right here in the title is an acknowledgment of what most people want.
To be a winner. To feel like a winner. With all the talk of win- win
thinking, we still want to be a winner and to enjoy the positive
emotions that accompany being a winner.

Winners make commitments

Losers make promises

While some people do treat their promises as commitments, many make
empty promises knowing that they may not actually perform. The meaning
of this stanza is clear; When winners make a commitment, they see it
through to completion. You can count on a winner to come through.

Winners go through a problem

Losers go around it, never get past it

This little-known secret of winners is powerful. When encountering a
problem, don't just work around it this one time. Why not over-
respond? Solve the problem then keep going to solve the source of the
problem. Fix it for good, not just for now.

Winners say, "Let's find out"

Losers say, "Nobody knows"

An insatiable curiosity allows winners to explore the source of
opportunities as well as the source of problems. This makes it more
likely that the winner will develop even more opportunities while
solving the source of recurring problems. It also turns out that
genuine curiosity about other people is one of the secrets to
increasing sales, improving customer service and strengthening
relationships.

Winners always have a plan

Losers always have an excuse

Have you noticed that successful people seem to know where they're
going and what they want? It's no coincidence that winners have a
plan. The process of thinking through the issue of what's important,
allows the winners to keep a clear vision of the future and outline a
path to get there. They routinely examine their mission by asking
"where am I going with this", and "how will I accomplish my goals?"

Winners say "There's a better way"

Losers say, "It's the way it's always been done"

Continuous improvement is one of the hallmarks of successful people.
Their motto is "If it's worth doing, it's worth doing better". Losers
just keep on doing the same old things yet they expect different
results.

Winners are always involved in the answer

Losers are always part of the problem

Winners are not whiners. Instead of complaining about a problem (or
just sitting there being part of the problem), winners jump in looking
for a solution. No blame, no pointing fingers, no belly- aching. Just
fix it and move on.

Winners know there is still much to learn

Losers want to be considered an expert before knowing how little is known

We've all encountered people who want to be "the expert", even though
their expertise is out-of-date, incomplete, or overestimated. You
won't find them in classes, in the library or in deep debate. Winners
understand that knowledge has a short shelf-life. Winners also
appreciate that, to be valuable to clients, they must constantly
explore the limits of their knowledge.

Winners learn from their mistakes

Losers learn only not to make mistakes by not trying anything different

Winners are opportunistic about learning from daily experiences. All
of us have hundreds of experiences each day that could be valuable
learning opportunities. Losers ignore them and surf the shallow
surface of their knowledge. Winners understand that learning in
today's fast-paced and ever- changing environment can't be left to
chance. Successful people make a conscious effort to actively seek new
ideas, innovation and growth.

There you have it. Is this the complete list of the characteristics of
successful people? Surely not. There are as many types of winners as
there are winners. To me, the poem addresses the fundamental qualities
of being a winner. It captures the spirit of open-mindness, strength
and compassion that makes winners and winning attractive.

Be a winner!

Your 12 Point Plan for Personal Success
by Stephan Iscoe
http://LinktoSuccess.com
No one becomes successful by accident. Success requires making a plan
and sticking to it. It is simple, but does require commitment; it is
not hard to do, but does require hard work. The good news is that once
you begin, the results start coming almost instantly. The miracle of
successful living is that the smallest step towards success attracts
more success! Here is a very brief outline of the key points that will
help you achieve the highest levels of success.

1. Look into the nearest mirror - the person staring back at you is
the only person responsible for your success. Smile! No one else is
the cause of your success or to blame for your short comings.
Successful people take full responsibility for their actions.

2. Smile back at your reflection. Successful people are cheerful,
optimistic, and forward thinking. If you think you don't have anything
to smile about, smile anyway. Positive thoughts drive out negative
thoughts. It's hard to have a negative thought while you are smiling!

3. Positive self-esteem is the foundation for success. Feel good about
yourself and your abilities, achievements and potential. Don't dwell
on your mistakes. Remind and praise yourself on your past
accomplishments. Congratulate yourself for taking positive steps
toward a more successful future.

4. Believe in yourself. You are here for a purpose. God doesn't make
extras just to fill in the scenery. Find your mission and begin
working to fulfill it.

5. Desire to be a success. Decide right now that you will be
successful. Commit to being successful.

6. Associate with successful people. Do what they do. When faced with
choices, make the choice a successful person would make. Blow your
bonus check on a gambling trip or invest it?

7. Avoid unsuccessful people. Do not under any circumstances associate
with negative people. Negative people are toxic; they destroy, they do
not build. They are vampires that can live only by draining the life
from others. The odds are greater that they will pull you down faster
than you can lift them up. You can choose to stay away from all the
negative people in your life. Avoid all the whiners, complainers,
blamers and thumbsuckers.

8. Do what you are best at and what you get the most satisfaction
from. There is no reason to stay stuck doing things that are
frustrating, boring, unhealthy, unproductive, demeaning or
unfulfilling.

9. Write down a vision of how you want to live your life. Be specific.
Where you want to live, what kind of carpet, who your friends are,the
pony's name, what the new church rec hall you donated looks like, etc.
Make a Future Scrapbook; paste in pictures, drawings, essays,
clippings. Make up news headlines about your achievements. Every day
visualize yourself as you would like to be - and then act that way!

10. Write down your biggest goal, the one you most want to fulfill.
Write it in the present tense, "I am...", "I have...", "I
contribute...". Success is the result of a personal decision, so start
your goal with "I". Read your goal aloud every morning and night. Tell
people your goal. Make a plan to achieve your goal and stick to it.

11. Study the science of success. Read books, listen to tapes, watch
videos and positive TV programming. Talk to successful people and ask
them how they became successful. Fill your mind with positive thoughts
and give yourself positive self-affirmations.

12. Every day do something that brings you closer to your goal. Never
give up. You can only fail if you quit trying. Keep on keeping on and
you will succeed. Achieving success requires following a system. Begin
today by putting these 12 points into daily practice. Everybody
experiences fear of failure, uncertainty, insecurity, low self-esteem,
indecision, depression, nervousness and embarrassment. Successful
people master these temporary conditions by taking positive action, by
sticking to their plan, by maintaining their vision of the future, by
learning from setbacks and by rededicating themselves to the pursuit
of their mission. By following these simple steps you will become
successful and achieve all that you desire.

How to Command, Influence and Control People
by H.Bangambiki
http://www.laughingtonpost.com

The Styles and Methods of Power

Power is the ability to get things done--your way. Sometimes it's a
direct order that you give, sometimes a suggestion you make, or a
request or the asking of a favor; but the result (if you have power)
is always that the other person acts and you derive a benefit from
the other person's actions.

One can have power in many different ways. You have it over your
employees because you pay their salaries. If you are an expert in a
special field, it's because you know the best way to handle matters.
In a legal dispute, it's because you have the law on your side. If
you have credit cards, it can be part of your life style to go into a
store, hotel or restaurant, in any city, and order whatever you wish.
In politics, it's because folks will give you their votes, hoping that
you'll work and succeed in getting the government to serve them in
their area. And there's the power that derives from being talented,
charming and capable; of being up-to-the-minute and knowledgeable, so
people know if they let you handle things for them or listen to your
advice, they'll come out ahead.

One more aspect of power. This concerns competition. If all the world
were fair and equal, one would have no need for the upper hand, for
the advantage, for power. But, of course, the world isn't. Which often
means that in a competitive situation you cannot merely settle for an
equal chance. You must keep your eyes and ears, and indeed all your
faculties, open for any clue or other tips that will move the balance
in your favor.  Whenever possible, make sure you get more than an
equal chance.

You have to look the part

People are impressed by how a man looks. They are often not aware of
exactly why they treat one man like a VIP and another gets the bum's
rush. Their reactions maybe subliminal, below their conscious
awareness. But take it from me, if you're well dressed, neatly
groomed, hair
trimmed, etc., and are driving a snazzy car, you'll be well received;
while a guy who's wearing sloppy clothes, unshaven and unclean, and
who's driving an old heap, will hardly get any attention at all. Look
as good as you can; and back it up in other ways.

Add the other elements of power image too. Clothing--it's worth
investing some money to be well dressed. Buy suits on time payments
if you can (a credit card is very useful for this).

1.That way the clothes are helping to get power, and therefore money,
for you while you are paying for
them.
2.Don't forget about the car you drive around in; if the one you have
is not impressive then rent one that is. Rental cars don't cost that
much and driving a good one pays dividends in the power sphere.
3.Try to join clubs and organizations (business, social, political)
that have important and influential members. If at first you can't
become a member, then maneuver a member into taking you as his guest.

Money and power beget money and power; the more they think you have,
the more you'll get.

We must repeat that, for most people, those who belong to the power
elite are those that appear to belong to it. Unless recognized
personally, a millionaire will be turned away from a class restaurant
if he's not well dressed.

You have to consciously act the part of one who is used to being in command

There's another extremely important factor in appearing to already
have money and power beyond what I mentioned above and that is your
own manner of doing things. You must move, speak and act power. Have
you ever met the grandson of a man who amassed a fortune and wondered
how a grandfather who did so much could have a grandson who seems like
such a weakling? It's true; that grandson could never get rich on his
own; if he hadn't inherited his family's money, he'd be poor because
he's weak and incompetent. And it shows. The men who, like yourself,
are capable of making money now, are men who can act in a strong style
that almost seems to draw money like a magnet. Language, and the way
you speak, can say as much as the ideas in your words. Equally
important, however, is your body language, that is the way you stand,
walk, move and sit and the gestures you make.

Be the man who's in demand

Power isn't just you being able to call someone and tell him what to
do; it's also other men calling you and asking for your business or
wanting to associate with you. If you're a man who seems to possess a
wide knowledge of the world, an awareness of trends, if you're the
early-bird who
catches sight of opportunities first, if you're the man who's capable
of handling many different kinds of situations, then people will seek
you out.  They'll invite you to vacation at their country homes, to
meet their influential associates, to join their social clubs and
their business syndicates.  And when they do, all of these will
enhance your image of power, and widen your power base so you can
zoom ahead even more.

When the fight for power gets harder

Everything we've said so far will be useful in just about every
situation; but when the struggle for power gets more intense, some
other methods are needed. When the person(s) you're talking to has
been open-minded and your powers of persuasion have been working from
the moment you first started talking, the usual techniques can be
used. But what if you're dealing with someone whose mind is closed to
your ideas and influence from the start, or who feels he is in direct
competition with you? Then things must be handled somewhat
differently.

Most important, be in control of the situation at all times. If you
feel your control is slipping, do something to regain it. You could
do something vividly dramatic and totally bewildering to the other
person, like suddenly shouting or pounding on your desk. Or you could
press a secret buzzer to have someone rush in and interrupt when the
other side is coming on too strong.

Never ever get into a power struggle when you're at any kind of a
disadvantage; if you're tired or if the discussion turns to a subject
in which the other guy is an expert. Always focus your own mental
energy and project your thoughts into his mind. Look him in the eyes,
try to gain his confidence. Always have a picture in your mind of a
victory over this person bigger than the victory you need to achieve
your aims. And whatever you do don't lose; that is, if you realize
that you can't beat him, then leave. It's better not to have a
victory than to have a defeat.

Say Whatever does the Trick

Making a lot of money is largely a process of convincing people, of
selling yourself, your service, your product. And the trick is to
tell them what they want to hear. The problem is to find out what they
want to hear. So you'll start out by giving them basic information
about what you're
selling. You then continue with your sales approach, always watching
their reactions carefully. When you see their eyes light up and they
then lean forward with interest, then continue on the topic that
aroused that interest, no matter how odd it may seem to you. And do
the opposite
when you reach any of the usual parts of your presentation, if the
prospect shows less than the normal amount of interest; that is,
shorten that part and go on to the next.

From start to finish

You start out by telling them what the product or service is or does.
The kinds of benefits people get from using it and some examples of
ways, both usual and unusual, that other folks have used it. It often
helps to mention that "Mr. Anderson, you know, the big shot, just
bought two of
them for his own use," or that "the XYZ Corporation recently bought
seven of them for their executives." Or if you're selling a more
heavy duty item, that "Smith's Construction Company has been using
them for years." If it's almost a custom made item tell them they're
one of the select
few who will even get a chance to buy it. If you have an opportunity
to talk to his wife or a friend of his, plan along with that other
person and have them unknowingly hinting to the customer that "it
certainly sounds like a good deal." If his kids are with him, get
them to needle him into buying it. Use any method that works.

Suppose the guy seems convinced but he can't seem to make up his mind
to actually hand over the money or sign the contract to make the
purchase. Sometimes it helps to imply that he really can't afford it.
He might buy it just to show you he isn't poor or a cheapskate.
Another great strategy that sometimes works in desperation to close a
sale is to make him feel guilty if he doesn't buy. Imply that he
deliberately wasted your time and energy, that he's rotten and
thoughtless, that he just wanted to make a phony impression on his
wife or girl friend or anyone who is there with him. You might want to
say all this very loudly, almost yelling, so that a crowd gathers and
you shame him into buying. Or you can try another method to clinch the
sale, offer him a "special bonus." Say you'll give him a longer time
to pay, or a contract for "free" servicing or that you'll add on a
bonus of another item "free". Actually he may have been entitled to
this "extra" all along, but if you haven't yet mentioned it, then
now's the time. Try to keep one or two things in reserve as your last
pieces of ammunition.

Prepare in advance so you know the other man's point of view; if
you're able to benefit him, he'll practically jump at the chance to
let you make money off him. Tell him what he wants to hear. And above
all, keep eyes and ears open for any information, clues or tip-offs,
favorable or unfavorable, that will give you the power to persuade
him.

In the power battle called life, victory will go to those who find the
right weapons and use them. So keep your weapons handy; get a head
start and don't lose it. Be alert for clues you can use to your
advantage. Present yourself with confidence; broadcast your will
power, speak and move with assurance, and, to make sure they get the
message, have the clothes car, office and the other outer appearances
of power and money.  People tend to believe what they see, and if you
look like you've got it made, then you will have it made.

How To Master The Art Of Compromise

In many cases all you will be able to get by being persistent is a
compromise. Compromises are good. They get you one step[ further that
you were in the first place. If for some reason, such as self respect,
you can't accept a compromise, then don't. Give whatever you can
offer. If you do this you may not get any type of settlement in your
favor. Here are steps that will show you how to compromise so that you
get the best of the bargain:

Tell The Person Exactly What You Want

Tell the person exactly what you want in terms he will understand: "I
want more..."

Persist

You must get past the other's person's excuses and alibis. You must be
persistent until you feel you have hit the other person's
bottom line. You may find that the other person is trying to
manipulate you. Be persistent until that person has stopped all
his manipulation.

If You Are Unsure

If you don't know what they want, then don't make a decision. You must
think the situation over before you make a compromise. If you need
more time, tell the other person that you need more time. Make sure
that you can live with the compromise you have made before you make
it.

How To Deal With Useless Criticism

Some criticism you get is in poor taste. We must know how to deal with
criticism such as: "You look terrible today" or, "You left this in my
way, you idiot." Make sure this kind of criticism useless, follow
these steps.

Agree With The Facts

Agree with the facts the other person presents. For example, in
response to "You look terrible today," say, "I haven't been feeling
too well lately"; in response to "You left this in my way you idiot,"
say, "Yes, I did leave it in your way." Answer only what was actually
said, not what was implied.

How To Answer

Stay calm and collected during the whole conservation. Don't lose your
temper. The only way a person will make you feel degraded is if you
degrade yourself. You don't want to waste your time which this type of
person, so don't defend yourself or attack him.

If You Made A Mistake

If you made a mistake, accept that fact. Don't accept the quilt for
the mistake. If you were in error, then apologize. If you apologize,
don't make a big thing out of it. Don't tell them how dreadfully sorry
you are, etc. Just give them a plain "I'm sorry."

How To Deal With Important Criticism

When you get important criticism, you want to know how to get the best
out of it. Useful criticism is one of the best ways to make
yourself into a better person. Follow these steps to get the most out
of useful criticism.

Ask For Feedback

Find out exactly what others object to about you. If someone tells you
"You are bad," that's not good enough. Find out exactly
why that person thinks that way. Be very persisent find out why the
other person feels the way he does. Vague criticism is worthless to
you.

Guess At Reason

If a person refuses to give you reasons for criticizing you, keep
guessing at your faults until you get the right one. This may be
the only way to find out what displeases the other person.

Don't Be Defensive

If you act defensively, you may not be able to benefit from useful
criticism. Don't be sarcastic or intimidate the other
person. You want to learn how to become a better person from the criticism.

Ask the person how you can change your objectionable behavior; be open
to reasonable suggestions.

How To Get Your Coworkers And Your Superiors To Like You

Good relations with your co workers and your superiors will not only
help you but will make work more enjoyable. Every employee
wants to be liked by other employees. If you treat people the way they
want to be treated, they will like you. Some of us don't
know if what we do is objectionable to others. I am going to give you
a list of things that attract other people to you and things
they find objectionable. When you move up in the company, you will
need all the support you can get.

Praise People

Everybody enjoys being praised. People look for approval of themselves
in others. But you should praise people only when they
deserve it. If you praise people when they don't deserve it, or if you
praise too much, you lose your credibility. Don't
exaggerate your praise. Make the praise as warm and sincere as you can.

Don't Put People Down

Putting down a person can be very damaging to you and the other
person's relationship wit you. People don't want to feel degraded
by being called stupid, crazy, weird, etc. Don't put down anyone even
if they are not present. If you do, the word will get back
to them and you will look bad. Always talk positively about people.
Even if you don't like them, still speak highly of them you will be
amazed at what this does. If you must say something bad, don't say
anything at all.

Don't Be Concerned With Your Interests Only

here is nothing wrong with caring and looking out for yourself. Just
don't make it noticeable to other people. You will be
resented by other people if you seem selfish. Make sure others know
you look out for them as well yourself.

Share The Credit

When others have helped you accomplish something, share the credit
with them. Even if their contribution was not as great as
yours, still share the credit with them. You will be surprised

Don't Ask Others To Do For You What You Won't Do For Them

If you are unwilling to go out of your way for people, don't expect
them to go out of their way for you. Set the first
example if you help them, they will help you.

Always Show Appreciation

Everyone wants approval and recognition for what they have done. If
someone helps you in any way, tell him how much you appreciate his
actions. If you don't, he may not help you again. This is what you
should tell people when you show your appreciation: "I really
appreciate the way you..."; "Thank you very much for..."; "You are
very good at...": "I really want to tell you how much I
appreciated..."; "You were very nice to..." Don't show too much
approval and recognition or it will lose its credibility.

Don't "Show Up" Others

When you "show up" others you do it at their expense. "Showing up"
people in front of others takes away their self respect. If
you are better than others, they will know it you don't have to degrade them.

Treat Small Things With Importance

Some things that seem small to you mean a great deal to others. Don't
ignore small problems; help people solve them. Treating
small problems with importance shows other people you care.

Care About People

Everybody is concerned about themselves and it is important for them
to have someone to care for them. They are touched when you care about
them. Helping people cope with life makes people feel that you care
about them.

Don't Criticize A Person In Front Of Others

If you criticise someone in front of others, he will always resent
you. It is one of the most degrading things you can do. If you
criticize someone, criticize him constructively and privately.

Give People Your Undivided Attention

All people want to fell important. To make a person feel important you
must give him your undivided attention when communicating with him.
Get rid of all interruptions. Make sure you have good eye contact and
that you are not playing with objects.

Be Courteous, Tactful, Polite and Diplomatic

Everyone appreciates people who are courteous,tactful, polite and
diplomatic. The best way to learn these qualities is from others.
Study someone you would like to be like and learn how he conducts himself.

Be Confident

If you don't have confidence in yourself, others will not have
confidence in you, either. People admire and respect confident
people. If you show others doubt, they will treat you with doubt. Be
sure of yourself and play down your insecurities.

Winners and Losers

"She's a winner!" He's a real loser". We frequently hear people
labeled as winners or losers. We seem to instinctively know the
difference.

Many years ago, I saved a poem that discusses the difference between
winners and losers. I don't know who wrote it, but I'll tip my hat to
her or him, because the poem captured the essence of character that
distinguishes winners from losers. I'll share it with you now with my
thoughts.

BE A WINNER!

Right here in the title is an acknowledgment of what most people want.
To be a winner. To feel like a winner. With all the talk of win- win
thinking, we still want to be a winner and to enjoy the positive
emotions that accompany being a winner.

Winners make commitments

Losers make promises

While some people do treat their promises as commitments, many make
empty promises knowing that they may not actually perform. The meaning
of this stanza is clear; When winners make a commitment, they see it
through to completion. You can count on a winner to come through.

Winners go through a problem

Losers go around it, never get past it

This little-known secret of winners is powerful. When encountering a
problem, don't just work around it this one time. Why not over-
respond? Solve the problem then keep going to solve the source of the
problem. Fix it for good, not just for now.

Winners say, "Let's find out"

Losers say, "Nobody knows"

An insatiable curiosity allows winners to explore the source of
opportunities as well as the source of problems. This makes it more
likely that the winner will develop even more opportunities while
solving the source of recurring problems. It also turns out that
genuine curiosity about other people is one of the secrets to
increasing sales, improving customer service and strengthening
relationships.

Winners always have a plan

Losers always have an excuse

Have you noticed that successful people seem to know where they're
going and what they want? It's no coincidence that winners have a
plan. The process of thinking through the issue of what's important,
allows the winners to keep a clear vision of the future and outline a
path to get there. They routinely examine their mission by asking
"where am I going with this", and "how will I accomplish my goals?"

Winners say "There's a better way"

Losers say, "It's the way it's always been done"

Continuous improvement is one of the hallmarks of successful people.
Their motto is "If it's worth doing, it's worth doing better". Losers
just keep on doing the same old things yet they expect different
results.

Winners are always involved in the answer

Losers are always part of the problem

Winners are not whiners. Instead of complaining about a problem (or
just sitting there being part of the problem), winners jump in looking
for a solution. No blame, no pointing fingers, no belly- aching. Just
fix it and move on.

Winners know there is still much to learn

Losers want to be considered an expert before knowing how little is known

We've all encountered people who want to be "the expert", even though
their expertise is out-of-date, incomplete, or overestimated. You
won't find them in classes, in the library or in deep debate. Winners
understand that knowledge has a short shelf-life. Winners also
appreciate that, to be valuable to clients, they must constantly
explore the limits of their knowledge.

Winners learn from their mistakes

Losers learn only not to make mistakes by not trying anything different

Winners are opportunistic about learning from daily experiences. All
of us have hundreds of experiences each day that could be valuable
learning opportunities. Losers ignore them and surf the shallow
surface of their knowledge. Winners understand that learning in
today's fast-paced and ever- changing environment can't be left to
chance. Successful people make a conscious effort to actively seek new
ideas, innovation and growth.

There you have it. Is this the complete list of the characteristics of
successful people? Surely not. There are as many types of winners as
there are winners. To me, the poem addresses the fundamental qualities
of being a winner. It captures the spirit of open-mindness, strength
and compassion that makes winners and winning attractive.

Be a winner!

To your Success

H.Bangambiki
http://www.laughingtonpost.com

How to Quickly Get Out Of Debt
H. Bangambiki
http://www.dailywebpro.com

Lesson 1: Setting the Foundation

Key points

1.As a financial topic, debt is simple. There are no complicated
secrets, but -- unfortunately -- there are no easy solutions either.
It's going to take discipline to bury the debt monster. Anybody who
says otherwise is probably just after your money.

2.It doesn't take a reckless person or a wild spending spree to create
a debt crisis. A consistent pattern of spending just a little more
than you make, over time, can lead to a serious problem.

3.Compound interest is a powerful force that works either for you or
against you. If you want this force on your side, you'll have to rise
above the advertisers and bankers that are used to having the force on
their side.

4."Good debts" combine a low, tax-adjusted interest rate with the
potential to gain something that appreciates in value.</strong>

Welcome to The How to Get Out Of Debt site quick course on beating
debt! We are highly committed to turning net debtors into net savers,
replacing the slavery of monthly payments with the joy of expanding
investments. We sincerely hope that this series is a big step in that
direction for you.

Since you've decided to take a debt seminar, we're going to guess that
money problems are at least nipping at your heels. Or perhaps - worst
case - an overwhelming debt burden is pushing you to the edge of
financial disaster. Since we don't know exactly where you are, we take
a big-picture approach in this first lesson.

If debt is not currently a problem - you're just here to learn and
head off future problems - let's get started with the basics of
managing debt and the fundamentals upon which you will build your
financial success.

Beating Debt Is Simple, But Not Easy

Getting out of debt and staying out of debt is actually pretty simple,
at least compared to most money management topics. It boils down to
spending less money than you make, on a consistent, long-term basis.
That's it. Nothing else will get the job done. Nothing.

And it's easy too. Right? Wrong! While conquering debt won't send you
scrambling for thick math textbooks, it's an ocean away from easy. One
moment of weakness - or worse, one cruel act of fate - and you're
scratching and clawing your way back out of the hole. It's not easy.

So, how did something so simple get to be so hard? Because beating
debt demands a lot of will power over a long period of time. If you've
been a human being for any length of time, you know that this is one
tough combination to nail down.

We know we're preaching and it's a pretty depressing sermon. But we're
afraid there's no getting around it. Over the long term, regularly
spending more than you make - even just a little more - will bring
your financial house down, even if you are the most responsible of
bill payers. Until this basic lesson is taken to heart, even
bankruptcy is just a temporary solution.

How Careful Do You Have to Be?

Consider two simple examples, starting with a positive one. Let's say
that you begin setting aside $75 every month, in savings earning 5%
interest. If you can pull this off for five years, you'll end up with
a comforting $5,100 in emergency savings.

Now, let's turn this picture on its head, and assume that you come up
short by the same $75 per month, on average, over the same five years.
Further, assume that you routinely patch over this difference with a
credit card. Note that we're talking about less than $20 per week here
- hardly a symptom of reckless "retail therapy." Nonetheless, at the
end of five years you'll be looking at more than $7,200 in debt,
assuming an 18% credit card interest rate.

That's an extra $2,100 in debt, beyond the $5,100 earned by saving $75
per month. This is the difference between saving and paying down debt.
Saving is hard enough, but paying down debt is $2,100 harder!

And this difference just gets bigger as time goes on. While your bank
savings work hard twenty-four hours a day to make you more money, any
outstanding credit card debt is likely to be working three times
harder, charging a much higher interest rate than your savings pay.

Moreover, as a saver you have the force of compound interest on your
side, the idea that your balance starts to snowball as you earn
interest not only on your deposits but also on the interest payments
you leave in the account. As a debtor, this same powerful compounding
force works against you, and the higher the interest rate, the faster
the snowball builds.

Good Debt versus Bad Debt

We've been talking tough about consumer debt, but we do realize that
some debts are an inescapable part of life for most of us. Still, even
when we carry debt, there are some basic debt management rules that
will keep the lid on problems:

* Be especially wary of double-digit debt - credit cards and loans
that charge 10% or more in annual interest. At this level, balances
snowball quickly, and it's tough to get a return on the borrowed money
that beats this cost.

* Good debts, like some mortgages and student loans, combine two things:
1) a relatively low, tax-adjusted interest rate; and
2) the potential to invest in something that, over the long run, will
grow in value.

* Ignore banker's rules for "acceptable" levels of debt. These are
designed by banks to maximize their income. Their calculations
cleverly keep you far enough under water that you continue to pay them
interest, but not so deep that you go broke. Don't be a slave. Set
tighter rules on your own.

Summary - The Personal Finance Divide

Somewhere in every mountain range there is a line that divides water
flow. On one side of the line, for example, water flows east. On the
other, it flows west. Regardless of direction, these rivers and
streams start out as a trickle but quickly pick up speed as they head
down the mountain, finishing as raging torrents.

Money and wealth work exactly the same way. Over time, you'll end up
on either the savings or the debt side of the personal finance divide.
It doesn't take much to nudge you one way or the other, but once a
direction is established, the momentum tends to build and it gets
harder and harder to go back.

If you want to "nudge" yourself in the savings direction, just
remember that it all boils down to spending less money than you make,
on a consistent long-term basis. (We're hoping you've noticed that
this is an important point.)

Lesson 2: Six Steps to Eliminating Credit Card Debt
Key points
Unpaid credit card balances are the worst kind of debt. Come up with a
plan for paying these off, and make it a priority. We offer six steps
to get you started.
Personal finance is confusing enough without a stack of credit cards
to track. Your goal should be to carry only one or two credit cards
with balances paid in full every month.
Now that you have a sense of "good debt" and "bad debt," you might be
worrying about one thing: that you have way too much of the bad stuff!
(Or maybe not: if you're keeping the bad debt to a minimum, give
yourself a pat on the back.)
If you're like many people, though, you're staring at a big pile of
credit card debt that is costing you plenty in monthly payments. Not
to worry, though, because in this lesson we're going to talk about how
you can pay that debt down, and keep your credit card use under
control in the future.
Pay Down That Credit Debt
There are millions of Americans out there who have paid off heavy
credit card debt, and now it's your turn to join them. It won't be
enough, however, to just make minimum monthly payments. Here are six
bigger steps you can take to get your debt under control:
Stop using your cards. The last thing you want to do with heavy credit
card debt is add to it. Take all your credit cards out of your wallet
or purse, and leave them at home (though you may want to keep one for
emergencies -- and, no, a really great sale or a cool new CD player
does not qualify as an emergency).

Cut up the cards if that's what it takes to stop using them. Some
people keep their cards out of reach by freezing them in glasses of
water.

Stop the flood of credit card offers. You can force credit bureaus to
stop selling your name and address. Dial 1-888-5-OPTOUT to get the
forms. If you're searching for a low interest card, don't wait for it
to come to you. Visit a site like cardweb.com or bankrate.com to do
your own research.

Always pay more than the minimum. The credit card companies are not
just being nice when they require only a small minimum payment on your
total balance. They calculate this minimum to extend your payments for
as long as possible, to boost their profits. Scrimp if you need to,
and pay as much as you can above the minimum every month.

Plan your attack. Don't just throw yourself at a mountain of debt
without preparation. How many cards do you have? What interest rates
do they charge? Which have the highest balances? Write down your
balances for each card, and their interest rates.

Generally, you'll want to start by paying off the card with the
highest rate first, and then the next highest, and so on. If you want
a quick boost, go ahead and pay off a card with a low balance, just to
have one paid-off card under your belt.

Reduce the interest rate. Most credit cards charge anywhere from 16%
to 20%, which is huge! But you can negotiate with your credit card
company for a lower rate. Particularly if you've had any of your cards
for a while, take advantage of being a faithful customer, and call
them up to demand a lower rate. Shoot for 11% or 12%. You'd be
surprised at how easy it is.

Consolidate your debts. OK, so you know what the interest rates and
outstanding balances are for each of your cards, and you've reduced
the rate on at least some of them. Next, consider combining your debts
onto one or two of your lowest rate cards, if you've got some credit
room on them. (If you're maxed out on those cards, then forget it.)
Simply call your lender and ask how to transfer funds.
If you're making payments well above the minimum, have reduced the
interest rates on your cards, and have consolidated your debt, then
you're in good shape with your credit card debt. We'll discuss
additional steps you may need to take for better overall debt
management in Lesson Four.
How Many Cards Are Enough?
In the end, your goal is to carry only one or two credit cards, and
pay off the balances each month. If you've gotten carried away and
have five, six, or more cards, consider the benefits of closing out
most of them:
Simplicity. Fewer cards will be easier to track. In addition, you'll
have a much better sense of your overall debt level when it's on one
or two cards, rather than spread across a bunch of them.
Better credit record. You'll want to have at least one credit card to
help build your credit history. If you're married, your spouse should
have at least one card in his or her name only, for the same reason.
Too many cards can hurt your credit rating, particularly if they all
have large unpaid balances.
Less temptation. The more cards you have, the easier it is to
rationalize excessive spending. "After all, this card only has $500 on
it!" (Never mind that you've got two more that are carrying $5,000
each.) But, remember that your card's credit limits are not like poker
bets: you don't have to match (or much less "raise") them. Fewer
cards, lower balances: that's your goal.

Lesson 3: The "B" Word
Key points
Discipline is great, but you'll also need information if you plan to
cut down on spending. This information comes from a budget. Even a
simple, top-level budget can be surprisingly valuable.
Short-term savings goals are a great way to enforce spending
discipline. Keep giving yourself the occasional treat, but get in the
habit of planning for them.
As we said at the outset of the seminar, beating debt is simple, but
not easy. For one thing, we are relentlessly driven by advertisers to
"keep up" with our friends and neighbors. Moreover, every time we turn
around we are confronted by the opportunity to get it now and worry
about paying for it later. Some credit card companies go so far as to
tell us that we "deserve" more stuff (sweet, aren't they?).
If you want to rise above all of this and take control of your
finances, you'll need a different perspective and the motivation to
act accordingly. So, the next time you're about to spend money that
you don't have on something that you don't really need, don't waste
your time feeling guilty (when has this ever worked anyway?). Instead,
ask yourself two basic questions:
If I can't pay for it in full this month, what is going to change next
month? Where will the extra income or reduced spending come from? Be
specific.

What fun, motivational one-year savings goal am I working towards?
Question One: B is for Budget
If you read question number one carefully, it's obvious that it can't
be answered effectively without a good understanding of how much money
is coming in every month and exactly where it's being spent. Creating
a detailed budget is obviously the best way to develop this kind of
insight but, for some reason, it's also among the toughest of personal
finance tasks to pull off. On the surface, it doesn't seem so
difficult, but it's amazing how few people actually complete the task.
If you're among those who have succeeded in setting up a budget,
please accept our heartiest congratulations. You'll skate through the
workbook exercises.
If you're in the much bigger group, however -- those of us who don't
budget, or haven't gotten to it yet -- don't give up yet. In the
workbook exercise, we'll get you started with a shortcut budget with
just enough work to make your question one answers pack a good punch.
Question Two: Motivation
Developing a budget, saving money, and sending out debt payments make
for a pretty dull life. You have to let a little sun shine in, or
you're bound to collapse under the strain and give up. One good way to
add some zest to the game -- while providing a motivational edge at
the same time -- is to come up with a fun one-year savings goal.
So, sit down and think about it. If there is a spouse and children
involved -- who will surely be wondering why money is suddenly so
tight -- get them in on the reward planning too. Together, come up
with something fun that will keep you all focused.

Lesson 4: Avoiding Setbacks
Key points
Don't attack debt so aggressively that you risk trading good debt for bad.
Planning for emergencies is a key element to any debt management
strategy. In particular, don't trade unsecured debt for secured unless
you are well prepared for financial emergencies.
So far, when we've discussed the details of debt, we've focused mainly
on credit cards. In this lesson, we'll expand the topic and consider
some common questions regarding other forms of debt.
Q. Once my credit card debt is under control, should I aggressively
pay down any car loans? Student loans? My mortgage?
A. Ideally, we'd all be 100% debt free. But, for many of us, this just
isn't a practical option, at least not in the near term. And if we
have to carry a little debt, we at least want to control the terms.
The risk in paying down debt too aggressively is that we can lose
control of the terms. This is where saving for an emergency enters the
picture.
For example, let's say that -- in an effort to pay off their mortgage
early -- a couple is making double mortgage payments every month.
They're cutting it so thin, however, that they fail to save any cash
for emergencies. Then, all of a sudden, one of them gets laid off.
Now, instead of making double payments, they're having a lot of
trouble making the required single payment each month. In the
worst-case scenario, the couple is forced back to high interest credit
card debt to make ends meet.
So, we're all for aggressive debt repayment, but don't spread yourself
so thin that it's hard to sleep at night. And don't neglect emergency
savings. Moreover, the after-tax interest cost of mortgage loans can
get down into the 6% range, a level at which investing any extra cash
might be more profitable, over the long run, than paying down the
debt. So be sure to start with the higher interest, non-tax-deductible
loans, like car loans. For most homeowners, the mortgage should be the
last loan you attack.
Q. Besides emergencies, what other things can upset loan repayment plans?
A. When we talk about saving for emergencies, we're talking about real
emergencies like losing a job or suffering an extended disability.
We're not talking about the car insurance payment that slipped your
mind or even replacing a broken down refrigerator. Try to budget
beyond the monthly must-pay bills to cover things like future
appliance needs, vacations, and next year's tuition payments. Failure
to do so can lead to a demoralizing step backwards -- to credit card
debt -- just when you were starting to make real progress.
Q. Should I consolidate multiple debts under one loan?
A. Maybe, but there are some important pros and cons to think through
first. The most obvious benefits of loan consolidation are:
Lower Interest Rate. It may be possible to borrow at an attractive
rate, and then use this money to pay off higher interest rate loans,
effectively "moving" a chunk of your debt to a lower-cost loan.
Simplification. It's easier to be disciplined if you're organized, and
it's easier to be organized with fewer outstanding loans to track.
But consolidation is not without risks. Just as we saw above, planning
for emergencies comes into play:
Trading Unsecured Debt for Secured Debt. Lower rate loans are commonly
"secured," meaning that the debt is backed by your home, car, or some
other tangible possession. Putting your valuable stuff "on the line,"
so to speak, is what gets you the lower interest rate. From the
lender's perspective, it removes a lot of the bad credit risk from the
deal.
The down side to secured loans, though, is that if you hit an extended
rough spot and default on the loan, you can literally lose your stuff.
Even bankruptcy laws may not protect your home, for example, if your
mortgage turns out to be the secured loan that you can't pay.
For this reason, many personal finance experts lay down a firm line.
They'll tell you never to trade unsecured debt, like credit card
balances, for secured debt. For example, the standard advice is not to
roll credit card debt into your mortgage or a home equity loan.
On the other hand, this advice is too conservative for some. Borrowing
against the value of personal possessions is sometimes the only way
out of lousy, high interest rate loans. If you do decide to put your
stuff at risk, be sure to consider whether you have adequate life and
disability insurance, a secure and stable job, and some emergency cash
set aside before you take the plunge.
Summary
When you get past credit cards, managing debt gets a little more
complicated. Keep attacking aggressively, but be sure to plan ahead,
especially for financial emergencies. You don't want to take a step
backward into credit card debt or, worse, default on a secured loan.

Lesson 5: (Optional) Debt Triage
Key points
If debt troubles have pushed you to the edge of sanity, STOP... and
take a deep breath. It may seem like the end of the world, but we can
assure you that it's not.

It's in everyone's best interest -- both yours and the people to whom
you owe money -- to get you out of crisis mode and into a repayment
plan that you can handle. Nobody wins if you spiral down to
bankruptcy.

The laws are actually on your side, although you'll have to get
organized to take advantage of them.

A good credit counseling service can turn your life around, but please
choose carefully. For some reason debt problems draw a lot scam
artists.
Are you being hounded by debt collectors or intimidated by lenders? If
so, we have some good news and some bad news. The good news is that
you are well protected by federal laws; the bad news is that it will
take a disciplined effort on your part to take advantage of these
laws.
So, before we get into specifics, here are three general strategies
that will help anyone battling a debt problem.
Start a record of every conversation you have, from here on out, with
lenders, credit bureaus, bill collectors, etc., by phone or in person.
We provide some space in the workbook for you to do this. Be
aggressive on the phone. Get names and write them down, along with
dates and key discussion topics, including any agreements reached or
promises made.

Save all related mail, including postmarked envelopes. When it's your
turn to send something important, go to the post office and ask for a
registered or certified letter and request a receipt that proves it
was received.

Be courteous and diplomatic, but make it clear to everyone involved
that you know your rights, are keeping careful records, and won't be
intimidated.
Yippee! Sounds like fun, eh? OK, we know these tasks are a drag. But
if you can force yourself to do them, you'll be armed with the facts
for each new round of battle against your creditors, and you'll gain a
comforting sense of control over the whole process.
Now for some specifics...
Start at the Source
Always start by contacting the businesses to which you owe money. Yes,
we realize that this is about as much fun as giving a speech in your
underwear, but it's generally to your advantage. When push comes to
shove, most businesses would rather not bring in a costly bill
collector. Faced with this option, most would rather work out a
repayment plan that you can handle.
Know Your Rights
By law, debt collectors cannot contact you before 8 a.m. or after 9
p.m., and cannot otherwise harass you, your family or friends, or tell
lies.

If a debt collector threatens you with jail time, it's guaranteed to
be a lie. Debtors are never jailed in this country, and nobody can
even garnish your wages without a legal proceeding.

You can prevent workplace calls or visits from a debt collector by
requesting that you not be bothered there. Put it in writing!

Since debt collectors can be sued for failing to follow these (and
other) rules, you can sometimes turn the intimidation tables on them
by mentioning that you are familiar with the law.

For more help in dealing with troublesome debt collectors, contact the
Federal Trade Commission at 1-877-FTC-HELP, or online at
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
Choose Your Friends Carefully
A good credit counseling organization can make all the difference.
These offer everything from expert advice and a sympathetic ear to
hands-on budgeting help. Many will even step in -- between you and
those you owe -- to negotiate repayment plans that you can handle.
Many of these counseling services are non-profit organizations that
offer services free of charge or for just a small fee to those who can
afford it. A good place to start is the National Foundation for Credit
Counseling (NFCC), a national network of Neighborhood Financial Care
Centers (NFCC). Call them at 800-388-2227 to find out if there is a
center in your area.
Unfortunately, for every such worthy organization, there are dozens of
rip-off artists preying on vulnerable debtors. Anyone who promises to
"quickly wipe your record clean" for a small fee, or similar magic
tricks, is probably a thief. Be especially wary of pressure sales
tactics. Most reputable counselors will wait for you to come to them.
Summary
Take advantage of the law and credit counseling to get back on firm
ground.These actions won't erase your debts. Chances are you'll owe
just as much money. But at least you'll be in a position where you can
think clearly and start laying the foundation for putting debt behind
you forever.

How to Get Out Of Debt Frequently Asked Questions
1. How do I build a strong credit rating?
Pay your bills on time, especially mortgage or rent payments. Apart
from extreme circumstances like bankruptcy or tax liens, nothing has
the impact of late payments. Anything more than 30 days late will hurt
you. Never let a payment of any kind -- even phone or utility bills --
get 90 days past due.
Limit your debt. If you absolutely must carry a balance on any
accounts, keep that balance as low as possible. Bumping up against
your credit limit on one or more cards is a signal to many lenders
that you're not a good debt manager.
Be careful not to apply for too much credit in a short amount of time.
Multiple requests for your credit history (not including requests by
you to check your file) will reduce your credit score. If you are
hunting around for good loan rates, assume that every time you give
your Social Security number to a lender or credit card company, they
will order a credit history.
Check your credit history for errors. This is especially important if
you will soon be requesting a time-dependent loan, like a mortgage.
All three national credit reporting agencies -- Equifax
(1-800-685-1111), Experian (1-888-567-8688), and Transunion (1-800
888-4213) -- have consumer ordering information on their websites. You
can also order reports from Truecredit.com (1-800-493-2392).
2. That all sounds great, but I've already made some mistakes. How do
I clear up a negative credit history?
The bad news is that past credit problems like late bill payments or
accounts referred to collection will stay on your credit report. The
good news, however, is that they affect your credit rating less as
time passes. You can lessen the sting of your less-than-angelic
history by habitually paying current bills on time. Your report
changes gradually as new information is added to your bank and credit
bureau files, and credit issuers give more weight to your recent
bill-paying history. A clean record for the last year or two can make
a real difference.
3. Should I borrow from my 401(k), or a similar retirement plan, to
pay back loans?
In general, this is a bad idea. Think about it this way: Your current
situation may seem like a nightmare, but imagine facing the same set
of circumstances in old age, without sufficient retirement savings.
Sound fun?
Sure, you'll make your loan payments back into your own retirement
savings (and, make no mistake, this is a good thing!), but while the
money is out of the plan, it stops working for you, delaying compound
gains. Also, if you change jobs, you might have to pay off the loan in
a hurry, or face a permanent dent in your tax-sheltered retirement
savings plus some penalties for good measure.
Finally, if your budget can accommodate these loan payments back into
your plan, why mess with your nest egg in the first place? If at all
possible, dig deeper for another option. Pre-tax savings plans are
just such a powerful tool, and saving for retirement is so much easier
if you start early and leave the money alone.
4. Do I really have to have a credit card? I've had trouble
controlling my spending in the past, and so prefer not to carry one.
If you've been burned by credit card debt and are reluctant to carry a
card again, consider setting up automatic monthly charges to your
card's account for regular, recurring bills such as newspaper
subscriptions or your phone. Then lock the card away where it's not a
temptation. That way you can start building a credit history.
Although they have their dangers, credit cards are still the easiest
way to establish a credit history. It can be difficult to get a loan
anywhere else -- including a mortgage -- without having documented
credit history. You don't have to use your cards much to improve your
credit rating, or incur interest charges by carrying a balance. Banks
and other lending institutions, especially those that don't know you
as a long-time customer, just want some evidence that you can handle
credit responsibly. The sooner you get started the better, especially
if you are currently renting but plan to buy a house someday.
5. Is it better to carry a gold card? Does it look better on my credit history?
While platinum and gold cards often offer special perks such as
frequent flyer miles for dollars spent, additional travel insurance,
and automatic rental auto insurance, these perks may not be worth the
annual fees -- often in the range of $85-$150 -- you'll have to cough
up to carry the card. If you're thinking about signing up for one of
these cards, realistically consider if the rewards correspond to your
lifestyle, and if they outweigh the cost of what is probably a
substantial annual fee.
Be wary of platinum or gold card offers that promise to improve your
credit rating or gain you approval for major credit cards you wouldn't
otherwise get. Often the only additional card you might get is a
secured credit card that requires a substantial security deposit with
a bank. In addition, many of these credit-card purveyors do not report
to credit bureaus as they promise, and their cards seldom help secure
lines of credit with other creditors.
Such 'gold' and 'platinum' credit-card offers usually are promoted
through television or newspaper advertisements, direct mail, or
telephone solicitations using automatic dialing machines and recorded
messages. Show them you're the wiser by not responding to such ads, or
consider taking the necessary steps to opt out by calling
1-888-5-OPTOUT
6. Should I declare bankruptcy?
Although it may be tempting to declare bankruptcy if you are feeling
overwhelmed by financial obligations you just can't meet, bankruptcy
should only be considered as a last resort. Contrary to what you may
have heard, bankruptcy does not wipe clean your credit history, nor
does it provide a fresh start.
Consider that:
Bankruptcy stays on your credit report for up to ten years.
If you declare bankruptcy, you will have difficulty getting future
credit such as a mortgage loan.
After bankruptcy, any credit you do get will probably cost you more in
terms of interest rates and fees charged.
Alimony, child support, and most taxes survive bankruptcy and will
still be owed.
Before you consider bankruptcy, try to work out a payment plan with
your creditors, or set up a debt-repayment program by contacting an
NFCC-member financial help center at 1-800-388-2227.

H. Bangambiki
http://www.dailywebpro.com