"Tell me and I forget. Teach me and I remember. Involve me and I learn." - Benjamin Franklin

Yes These 5 Simple Steps Guarantee You Will Get Out Of Debt!

First Things First - There Is No Magic Wand

Before we get into the 5 simple steps that guarantee you will get out of debt, you need to know there is no magic wand. If you are looking for a magic wand you can simply wave over your debts in hopes they will go away, you're at the wrong place. That magic wand does not exist. Not here, not anywhere. Anyone who tells you that such a magic wand does exists, is a pick pocket or a scam artist.

Chapter 7 Bankruptcy can make your debts go away howerver, it's not a magic wand and it's not as easy as the t.v. commercials make it sound. Attorney Dave Falvey has an extensive faq series of brankrupcty videos. These videos answer just about any question you could ever have about bankruptcy. Watching these videos is like sitting down one-on-one in your own private consultation with Dave.

Here is just a small list of the questions Attorney Dave Falvey's answers:

Means Test - Chapter 7 Bankruptcy Did you know before you can file for Chapter 7 Bankruptcy you must submit to what is called a Means Test. The Nolo Law website has a free means test calculator you can use.

Here are the different sections of the means test calculator:

Household Size/Median Income
Part 1. Military & Non-Consumer Debtors
Part 2. Calculation of Income For Median Income Test
Part 3. Application of Median Income Test
Part 4. Adjustment of Current Monthly Income for Means Test
Part 5. Calculation of Deductions Allowed Under Means Test
Subpart A: Deductions under Standards of the IRS
Subpart B: Additional Expense Deductions
Subpart C: Deductions for Debt Payment
Subpart D: Total Deduction Allowed
Part 6: Determination of Means Test Result
Part 7: Additional Expense Claims

These 5 Steps Will Only Work If You Have Enough Money Each Month To Pay Your Debts

The 5 simple steps that guarantee you will get out of debt will only work if you have enough income each month to pay your debts. If you do not have enough income these five steps will not work for you. If this is your situation you need help and perhaps you should look into filing bankruptcy. However, this would be a question to ask Attorney Dave Falvey.

Getting out of debt can be compared to a three-legged stool. In order to be successful all three legs must be there and all three legs must be sturdy. If one of the legs is missing or one of the legs is not stury it won't work.

One of the legs is MONEY. You must have enough money each month to pay your debts or it won't work. Just like the the stool that is missing the money leg won't work.

Success

Failure

Another leg in the stool is the CONTROL leg. You must take control of your money and you must take control of your spending. If you don't you are destined to fail. Crontrol is the only intangible leg in the system. What does that mean? It means you can't touch it, you can't see it, you smell it taste it and you can't hear it, but control truely exists. Control happens in your mind as part of your thought process. Only you can make this happen, only you can take control.

The third and final leg is the PLAN. We provide you with the plan. The plan that shows you how much money to pay each creditor. The plan that gets you out of debt in the quickest way possible. The plan that makes the best use of your money. The plan that saves you thousands of dollars. The plan that is personalized to your specific financial situation. The plan that you are in control of. The plan you are ultimately responsible for keeping up with.

Step 1 - List Out All Your Debts

Believe or not, this is the hardest step in the whole process. Why - because it makes you take action. It makes you look at your debts. It makes you look at how much money you owe. This may be something you have wanted to do for a long time but kept putting off. That's why this is the hardest part.

We provide an easy to use Worksheet for collecting this information.

Simply click...

File

Print Worksheet...

Here is an example of a completed worksheet with 5 credit cards and 1 loan.

Start Month: This plan will start in March.

Pledge Money: This is the extra money you will include in your debt repayment plan each and every month. This example uses $100. The use of Pledge Money is optional.

Repayment Plan: There are two options to choose from.

Immediate means the pledge money will be used right away starting with the first month.
Deferred means the pledge money will be delayed by one month. This lets you start your plan right away but gives you an extra month to budget for the use of pledge money.

Step 2 - Input Your Information

The next step requires you to enter your information into our system. Enter the information for each of your creditors. Here is how you would enter the information from the example worksheet:

Enter credit card information for Visa and click OK

Creditor: Visa

APR: 15.90

Balance: 2341.00

Payment: 70.00

Enter credit card information for Mastercard and click OK

Creditor: Mastercard

APR: 19.80

Balance: 1705.00

Payment: 42.00

Enter credit card information for Sears and click OK

Creditor: Sears

APR: 17.90

Balance: 3049.00

Payment: 91.00

Enter credit card information for Discover and click OK

Creditor: Discover

APR: 12.50

Balance: 859.00

Payment: 22.00

Enter credit card information for Best Buy and click OK

Creditor: Best Buy

APR: 20.70

Balance: 1248.00

Payment: 38.00

Enter loan information for Automobile and click OK

Creditor: Automobile

APR: 6.90

Balance: 9466.00

Payment: 187.00

Step 3 - Choose Your Payoff Strategy And Pledge Money

There are seven different Payoff Strategies you can choose from. The Payoff Strategy determines who gets paid first, second, third, etc. Each strategy is described in detail below. When you choose a strategy, your creditors will automatically be rearranged or sorted based on the strategy you selected.

Annual Percentage Rate
Selecting this option will prioritize your debts by the highest annual percentage rate The Pledge Money and all extra money from paid off accounts, will be applied to the creditor with the highest annual percentage rate first. This strategy will save you the most money over the entire length of your payoff plan.

Quick Elimination
Selecting this option will prioritize your debts based on how fast they can be paid off. This strategy is for those who like little victories along the way. It can be very rewarding to see debts disappear. This strategy will allocate the Pledge Money and all extra money from paid off accounts to those creditors that can be paid off the quickest. While it may not save you the most money over the long run, it does give you the satisfaction of closing out a debt and seeing it marked paid in full.

Custom Arrangement
Selecting this option lets you decide the priority of who to pay first, second, third, etc. You arrange the order of your debts by first highlighting each one and then using the Move Up and Move Dn buttons. This strategy allocates the Pledge Money and all extra money from paid off accounts in the order you specify.

Lowest Balance First
Selecting this option will prioritize your debts based on balance from the lowest to the highest. The Pledge Money will be applied to the creditor with the lowest balance first.

Highest Balance First
Selecting this option will prioritize your debts based on balance from the highest to lowest. The Pledge Money will be applied to the creditor with the highest balance first.

Lowest Payment First
Selecting this option will prioritize your debts based on monthly payments from the lowest to the highest. The Pledge Money will be applied to the creditor with the lowest monthly payment first.

Highest Payment First
Selecting this option will prioritize your debts based on monthly payments from the highest to the lowest. The Pledge Money will be applied to the creditor with the highest monthly payment first.

Pledge Money
Pledge Money is the extra amount of money (if any) you can afford to apply toward your debt repayment plan each and every month. The more Pledge Money you use, the faster you will get out of debt and the more money you will save. The use of Pledge Money is optional. While adding Pledge Money will make a difference, it is not necessary for you to have any extra money to make this program work.

For our example we are going to choose Quick Elimination and Pledge Money of $100.

Step 4 - Create Your Debt Repayment Plan

Step 5 - Stick The Monthly Payment Schedule On Your Fridge

Stick the Monthly Payment on the fridge and make the payments. That's all there is to it. By following your monthly plan you will be out ouf debt faster than you thought possible.