You’re not alone. With the state of the economy and unemployment rates wreaking havoc on families all across the country, more and more people are struggling just to make ends meet.

Raise your hand again if you believe that being in debt means that your credit score is not the best.

Again, if your hand is in the air you are certainly not alone. There is a common belief that when you are in debt that your credit score is low, or at least not as good as those that don’t have any debt.

But you know what?

It doesn’t have to be that way!

Find out how one of our own contributors was able to build a good credit score even while he was in debt to the tune of more than $50,000!

Edward Leyson details the five easy steps that he used to secure a good credit score while working to eliminate his debt in his book, Improve Your Credit Score in 5 Easy Steps! No Matter How Much Debt You Have Now. And the best part is that some of these tips can actually help you eliminate your debt sooner.

Pick up a copy of Edward’s bestselling book on Amazon today for just $0.99!

Buy it now!

Knowing that times are tight for many and even $0.99 might not fit into your budget, we will be happy to provide a Kindle copy to the first 5 people that will be willing to share their review on Amazon. Leave a comment below if interested.

Look forward to hearing from you!

There are some forms of debt that are understandable, good even, such as a mortgage at a low fixed interest rate or federal student loans, also at low fixed rates, that you can easily afford to pay off over time. A mortgage you can afford is an investment, as are manageable student loans, as they can help you earn your degree and make more money as a college graduate.

However, high interest credit cards, private student loans, car loans and other high-risk forms of debt are not good at all and do nothing to build your equity. Rather they just suck money out of your pocket each month and it’s truly in your best interest to climb out of this type of debt as fast as possible – even if it means taking what could be considered as overt measures.

Here are 5 ways you can cut your spending today and get out of debt.

1. Track Your Expenses

Free web based budget planners and expense trackers, such as popular Mint.com, are a great, accurate way to see where your money is going. Sign up for one of these programs today and start tracking your money by linking your credit card and bank accounts to the secure program. You can’t cut your expenses and get out of debt without first knowing where your money is going.

2. Pack Your Lunch Today and Everyday

If you eat out even a moderate amount you’re spending a lot of money. Gourmet coffee costs dollars, when it could cost cents if you brewed it at home. Sandwiches with bread, meat, cheese, lettuce and a few condiments costs several dollars, when it could cost much less if you made a sandwich at home and took it into work. Just by cutting your eating out money, you’ll most likely be saving at least $100 a month, if not more.

3. Downgrade Your Cell Phone Plan

Most people today have nice phones with an Internet data plan. If you have an unlimited data, minutes and texting plan, you’re probably paying a lot of money for it and you probably don’t need it. Save yourself around $50 a month by calling up your cell phone company and downgrading just one tier below your current plan. Then make sure you watch how much you text, call and surf the web.

If you talk on the phone a lot at home, get a Skype phone or other VOIP solution for unlimited calling in the US and in several other countries. Internet phones are extremely affordable.

4. Cancel Cable/DVR/Etc

Call up your cable company and cancel your cable and DVR subscription and whatever else you’re paying an arm and a leg for. You’ll save a significant amount of money each month by doing this. If you’re a huge movie buff, remember you can always rent and watch movies from your computer these days with an a la cart service, which is much cheaper.

5. Pay $50 More Than Your Minimum Balance On One Account

If you’re carrying high interest debt, you’ll never get out of debt by paying just the minimums. Pick your highest interest account and throw $50 toward the principal balance. Chances are you would have spent that $50 on something not very important and won’t miss it. Do this every month and you’re on your way to getting out of debt.

About the Author
Jessica Drew is a freelance writer and frugal shopping enthusiast who writes about a variety of financial topics such as credit cards, student loans and cheap flights.

Everyone has their favorite blogs and no doubt if you’re reading this post you know of at least one blog deserving an award.  Personal finance blogs are only one of many categories of awards to be given out at the World Media Awards to be held in the PayPal building in San Francisco on October 26, 2011.

With eBay partner network as lead sponsor and backing from Viglink, Trancos, GrowMap and Pace Lattin, the event is being widely publicized.  Media sponsors include Read Write Web, Adrants, Bloggeries, Media Vision,  The Affiliate Marketing Awards, FeedBurner alternative FeedBlitz, MyBlogGuest and the Guest Blogging Network Web Traffic Control.

Anyone is welcome to nominate their favorite blogs in any of the many categories.  Entries to the Media Awards are $45. Bloggers can nominate their own blogs and can receive a free nomination by blogging about the event. See the media awards nominations page for details.

Bloggers interested in promoting the awards can earn commissions on sales, discounted tickets for friends, exposure and links on the official site and a free ticket to this and other events by becoming an Ambassador. The awards will be presented during a full day of workshops on how to use the latest technologies and techniques to maximize your publishing potential.

Early Bird Tickets to attend the event are on sale for $50 and with space for only 500 are expected to sell out. (Event founder Murray Newlands, Author of How to Make a Blog Book and Online Marketing; a User Guide, has 517 members in his San Francisco Blog Club and San Francisco is teaming with bloggers and tech companies.)

Why not buy Early Bird Tickets to save some cash
and make sure you don’t get shut out?

Use discount code MyNewChoice to save 10%
off the cost of nominations and event tickets.

Use hashtag #wmads to follow buzz about the event on Twitter.

Follow some of these tips to have a better chance of staying above water.

Tips to avoid getting in debt

1. Create a budget

The first tip in making sure not to get in debt is to simply create a budget. If you are able to write down everything that you spend your money on per month, then you should have no problems in figuring out how much money you need to pay all of that off. You should also make sure that you will have some money left over each month just in case of an extra expense that you do not see coming.

2. Use a debit card or cash

By only using your debit card or cash, you will avoid trapping yourself in the problem of buying something that you cannot afford. If you do not have enough money in cash or in your checking account, then you should not be purchasing that item. Do not spend money that you do not have.

3. Avoid impulsive buying

Another tip in making sure that you stay out of debt is to simply avoid impulsive buying. If you see a really cool television set, then you should go home and think about it for a week before making the purchase. Even if you do have the money, you may find out that you don’t even like it that much after thinking about it for a week. Most impulsive buyers pay for items that they cannot afford, and that is what leads to their debt troubles.

4. Savings account

You should also make sure that you put a certain percentage of your income each month into your savings account. This may make your budget even tighter, but it is extremely important that you have some more money stashed away in case of an emergency. You never know what will happen, and you want to make sure that you have enough money laying around where you won’t have to worry about it.

Conclusion

Debt is an experience that no one wants to go through; it can feel like you are constantly below water trying to breathe for air. The most important thing you can do is create a monthly budget and make sure to save money constantly. If you use all of these tips effectively, then you should be fine.

About the author

David Spader is a freelance blogger who usually writes about saving accounts over at SavingsAccount.org. His recent review looked at where to get the highest CD rates.

What are the things you need to consider before applying for a joint account?

Here are 8 things to keep in mind:

1. Communication will be crucial.

The money in the joint account will of course belong to both of the authorized persons – to both of you. Each of you will be responsible for keeping track of any money that comes in and goes out of the joint account. This means that you equally share responsibilities in keeping up to date with any changes in your account. If one fails to communicate the changes and it shows up in the record, it may cause some serious problems, because expectations have not been set.

It may be difficult – but not impossible – when two individuals have access to one account. It just means the two of you really have to communicate to make sure things are in order.

2. Savings and expenses will be equally divided.

Having a joint account also means that you both share whatever savings or expense you will have. This is beneficial if you have the same amount that you are putting in to pay for the same rent, same utility bills, and so on. Every transaction will be recorded so it will be easy to compute and verify. If you think that there are any errors in the record, you will have to check with the other person first to know if there were any transactions that were failed to be mentioned beforehand.

3. Both authorized signatories’ credit score will be affected.

Both of your names will be in the joint credit card account and you will have the same capacity to make charges to a credit card. All of the card’s history will be integrated on both persons’ individual credit report.

If one of the joint users that has bad credit is added to the joint account, the bad credit will be neutralized and perhaps be able to obtain a better credit card. This will only be possible if the credit card is used properly, the bill is paid when it is due, and the balance is kept low.

4. Both credit card application and interest rate will be affected.

A joint user of an account will find it easier to apply for a credit card when it was difficult before. This is particularly useful for those who have had a bad credit record and have high-interest rates on their individual accounts. Obtaining a joint account will allow that person to leverage on the other joint user’s good credit record to obtain a credit card easily or lower the interest rate.

5. Both authorized signatories are legally responsible for any payments.

While in individual accounts, you are only responsible for your own finances, in joint accounts, you will also be responsible for the other person’s money and debt. So if there should be any delinquent payments on the other joint user’s part, you will still be legally responsible for it – even if these delinquencies are not your fault.

The issuer of the credit card can go after either cardholder for the payment because both of your names are in one account. They can have legal actions taken against you, or both of you, for any charges you have or might not have made.

6. Credit card conflict can cause relationship problems.

Arguments are to be expected with joint accounts when communication is put aside. If there were any transactions that have been made without the knowledge of the other, it could give offense. For instance, if one has made a purchase that is not acceptable to the other joint user, and it has not been informed to him or her, they will have some trust issues in the future that will strain their relationship. It could be personal or business – for whatever purpose it is – inconsistency in the joint account will cause some relationship problems if not managed well.

7. Separation, divorce, or death will make it difficult to manage the joint account.

You will be held liable for any responsibilities in the original credit card agreement even in the unfortunate event of separation from, divorce from, or death of the other joint user. In cases of separation, it will be hard to communicate any transaction or due payments on the other joint user’s share, if you severe ties with that person.

In cases of a divorce, you will still be held liable even when the divorce agreement says otherwise. This means that if your partner isn’t putting in his or her share of bill payments, you will still be affected. In cases of death, you will take over full ownership of whatever accumulated savings or debts you have in the joint account.

8. The joint account can be used as a medium to manipulate the other.

This should not be the case, but it happens to some people, most especially to those that are in troubled personal relationships. One uses the credit card of the joint account to put a stress on the other. For instance, a joint user can go on a spending spree without any intention of paying for it, leaving the other person to cover the bill. If the other person refuses to pay, both of them will be held accountable. This would not matter for the other person who splurged if he or she already has bad credit in the first place.

About the author

Ally is part of the team that manages Home Loan Finder, a free home equity loan and home loan interest rates comparison service in Australia. Before joining HLF, she was a Media Planner with McCann Worldgroup Philippines, Inc., with award-winning executions, including the Levi’s 501 “Live Unbuttoned” global campaign.

Stop Charging

This is perhaps the most obvious but, at the same time, the most difficult to do. Take out some scissors and cut up your credit cards, particular ones with high interest rates. If you are not able to do this, take your cards out of your wallet so you won’t be tempted to charge more.

Transfer Your Balances to a Card with Lower Interest

The lower the interest rate, the more each of your payments will positively affect your debt. Take advantage of balance transfer offers that are available.

Pay off your Debts from the Smallest to the Largest

Make all of your minimum payments except on the debt which is the smallest. Pay off as much as you can on this one. The advantage of doing this is that you will certainly be more encouraged by paying off one or two debts and this will be far easier with those that are the smallest.

Consider Programs that Offer Debt Relief

Because of the recession, there are several ways that you can go about reducing your credit card payment. Do some research and you are sure to find a way through which you can reduce your credit card debt.

Pay Half the Minimum Payment Twice Each Month

The calculated interest is dependent on the average balance on the account for the whole month. Making payments every two weeks will reduce the total balance and thereby reduce the finance charges. Additionally, splitting up the payment will make the paying of the bills less daunting.

Make Small Payments When you Have Extra Money

Any extra money that you receive from family, eBay sales, overtime earnings, part time work, or garage sales should go straight to your card to pay off the debt. Although it might not seem significant, it will soon add up. Additionally, if the money is deposited in your checking account, you will be more likely to spend it on unnecessary items.

Close New Accounts

As you pay off your balances, close out your new accounts and leave your one or two oldest cards open. One of the aspects of your FICO credit score is the length of your credit history, which becomes negatively affected when you open new accounts. Through the closing of these new cards, you are essentially making your credit history appear older. If you are unsure as to how old your current accounts are, you should consider ordering a credit report.

If you are not someone who is able to control your credit card spending, you should perhaps consider cutting up all cards and living solely on cash. However, before you do this, make sure that you have a stash of emergency funds.

This guest article was contributed by Jane Sanders from Debt Management. To get more information, read her articles about credit card debt management.

It’s not so bad as this period of life is the right time for teaching teens budgeting tips and prepaid credit cards can become a great tool to fulfill this purpose.

Another tool for your financial toolbox

Most parents don’t like the idea of giving their children traditional credit cards as they are afraid of overspending. Thus, credit card companies designed particular prepaid cards for teens which are aimed to teach kids dealing with money and credit being responsible.

The way these prepaid cards work is rather simple. Parents can load a particular amount of money that they deem appropriate for a teenager during one month, for instance, and then monitor the child’s spending by calling to the credit card company or with the help of online statements.

Safer than cash?

Actually, some experts consider these prepaid cards safer than cash because most credit issuers guarantee that the parents can be refunded for unauthorized purchases. In addition, the child won’t be able to spend more money than the parents have loaded. Moreover, even relatives can put money on the card for a teen instead of sending a check or just giving cash that can be wasted at once.

As for the teens, they will have more opportunities as having a prepaid credit card will allow making purchases online that are impossible with cash.

The major credit card companies, including Visa and MasterCard, offer prepaid cards for teens. As a rule, there are no overdraft fees, no interest charges or late fees. Thus, this financial option can become a really great tool for teaching budgeting tips.

However, it can become harmful without strict measures set for your teenagers. As an example on how to manage the prepaid card, load the desired amount of money each month in order to teach your kids efficient budgeting. Also, monitor your child’s spending carefully and discuss every purchase explaining whether it’s essential or not. Some parents may find it to be useful to make their children work for the card by means of doing some chores, for instance.

Great tool when used wisely

In fact, prepaid credit cards can be not only a good teaching tool, but also a great gift for teens. If your children will get prepaid cards, they will feel more adult and it’s really important for them to obtain a kind of financial freedom.

Don’t get too concerned if your child won’t manage proper spending right at the beginning. Be patient and try to explain every mistake. No one is perfect, but it’s better to make mistakes now at a young age in order to avoid the same errors as an adult.

Valery Thomson is a financial copywriter being occupied for the website providing payday loans online and she is eager to share her knowledge and experience concerning various financial issues.

Debt.

More of us are in it than we’d like to admit. In fact, debt is one of our country’s leading problems right now: our obsession with accumulation is responsible for putting us into this predicament, and it’s time to stop!

There is no quick way to get out of debt, unless you win the lottery. However, with small steps, we assure you that you can get there. Here are some helpful tips that you can use, if you too are trying to get out of debt.

1. Say goodbye to your credit cards

   The reason why most of us got into debt in the first place is that we went a little charge happy with our credit cards. Credit cards give you the false illusion that there is money to spend when there isn’t. Stop living that lie, and give up your credit cards. When you have no actual cash to spend for something, it simply means that you cannot afford it, and must save up for it.

2. Develop other hobbies and activities besides spending

   Most people wander around the mall because they are bored. Then, what happens? You end up buying this and that, items that will relieve boredom for now and give you temporary happiness. However, the cycle builds when you get bored again and you end up again buying something useless, accumulating debt in the process. Stop this cycle by keeping busy. Talk to friends, exercise, bond with your significant other or your kids. Just look for something worthwhile to do that does not involve spending!

3. Always plan for expenses

   This is the time to say goodbye to impulse buys. If you want to buy something without planning for it, it probably means you do not need it. Before purchasing anything, discuss it over. See if this is a real need or just a passing want.

4. Be smart and cut spending habits

   We know you’ve grown used to picking up the same brands when you go to the grocery store, but will switching to something cheaper really affect you in an adverse way? The next time you do the groceries, try to pick up the generic brands. Ask yourself if picking up the cheaper brand is really all that bad. Also calculate the savings you’ve made. You may be surprised at how much it is!

5. Consider a second income

   If only one parent is working, see if it is possible to get a second income. A great option for stay at home parents is to get a job that allows you to work from home, or even an online job. When debt is high, a steady income is one of the best ways to get it go down.

Sam Briones is a freelance writer who covers an array of topics, from finding cheap auto insurance to safety tips.

Image credit

In order to find the most lucrative, well-paying job, you need to start by pursuing the best possible degrees while you’re in college. This will ensure that you will not only have a job, but a good one to boot. Here is a list of the best money-making degrees that you can pursue for big money.

Degree in Medicine

• Average Salary: $145,000 – $151,000
• Medical degree holders include doctors, surgeons, nurses and healthcare administrators. The medical field is in high demand of skilled, qualified and well-educated medical personnel. Entry-level physician assistants and healthcare workers with degrees can climb the ranks very quickly.

Degree in Anesthesiology

• Average Salary: $ 290,000 – $393,000
• The anesthesiologist keeps the patient alive during surgery while the surgeon performs the operation. Their main job is to keep the patient alive by making sure that they’re asleep during surgery. They also administer medications to ensure that the patient is pain-free and comfortable after surgery.

Degree in Law

• Average Salary: $102,000 – $125,000
• Law school will prepare you for a career in corporate law, private law, or you may even find yourself in mitigating law where you argue your case to a jury. The salary can command an even higher check in practices where there is an opportunity to become one of the managing partners of a law firm.

Degree in Pharmacy

• Average Salary: $ 94,520 – $148,987
• Pharmacists work for retail drugstores, mental health centers, private physician offices and nursing homes. The degree in this area pursues some of the same subjects as medical students do, including biology, physiology and math subjects.

Degree in Education Administration

• Average Salary: $79,780 – $100,403
• This field is full of teachers and educational administrators, and the average salary is only for those with a four-year basic educational degree. With advanced degrees like a masters or doctorate, academic students can expect to make significantly more, especially if they work in the private school sector.

Degree in Construction Management

• Average Salary: $73,700 – $110,650
• In the construction industry, there is a high demand for management personnel, and your services can either go to the highest bidder, or to manage a bevy of projects for specialty clients. Construction managers are also found working as general contractors, either for larger construction companies or as self-employed business owners.

Degree in Dentistry

• Average Salary: $132,140 – $135,360
• Dentists in private practice make a handsome salary in a stable industry. They can also customize their practices to concentrate in pediatric, geriatric dentistry or in cosmetic dentistry where the income is even more lucrative.

Conclusion

By carefully choosing your degree that promises a healthy salary, you can forget worrying about those questions that plague some people’s minds: How much will I make? Is this enough for me to live on? How will I pay off my loan?

With these degrees, you’ll be able to write your own check, straight to the top and to the bank!

Even the rich and famous are not immune to financial blunders.

The case of MC Hammer is very well-known. He filed for bankruptcy with $13 million in debt after paying monthly wages in the amount of half a million to over 300 people for a term. It is clear that he overplayed his importance as a musician and individual.

What is stranger is that even savvy celebrities can make blunders.

Take Madonna, for example.

Till death do us part…

She has been an international superstar for almost thirty years. She is considered a marketing genius, reinventing herself and setting trends even now at 52. Somehow she missed signing a prenuptial agreement with Guy Ritchie. Her divorce cost her around $75 million. Guess that is not much where she comes from.

Signing a prenup is something many celebrities miss doing and then regret. When Reese Witherspoon and Ryan Phillippe got divorced, they split their incomes, unfortunately for Reese, who was making ten times more than him at the time. Sandra Bullock was wise not to make this mistake. She doesn’t owe her unfaithful ex a dime. And still, prenups are often avoided. This document somehow feels emotionally wrong. It feels like the very act of signing a prenuptial agreement can doom the marriage. Bottom line? If you want to be on the safe side, the prenup is your only option.

Enjoy your vices, but in moderation

Gambling, as with all vices, should be enjoyed in moderation. Being desperate to win can only result in a loss. A gargantuan one, in Michael Jordan’s case. He lost a reported $57,000 while gambling. He also lost over a million dollars in a single golf game, mistakenly believing his amazing basketball skills would translate to the golf course.

Death and taxes

A common blunder is forgetting to update your will. RIP Heath Ledger. In his will, signed in 2003, he left everything to his family. His daughter was born in 2005, but he did not update it. Now his $20 million fortune is the subject of dispute.

Nothing is for sure in this world but death and taxes.

Many celebrities can vouch for the latter.

Among them are Nicholas Cage, Pamela Anderson, Khloe Kardashian, Darryl Strawberry, and Wesley Snipes. Nicholas Cage’s earnest appearance is actually quite deceiving. He concealed upwards of three million dollars via Saturn Productions, his film company, in personal expenses. He should have hired an accountant, whose services are not only useful but also tax deductible. Poor Khloe Kardashian seems to owe $18,490 in back taxes. She had an accountant and actually did pay her taxes through him, but he “forgot” to present the respective documents to the tax officials.

Some people are just not to be trusted. Celebs like Leonardo DiCaprio, Cameron Diaz, and Matt Damon can testify to this. Their “financial manager” Dana Giacchetto stole around $10 million from them. Do not hire an accountant just because you heard he or she was good.

Spend less than you earn

Finally, live within your means. Do not spend more than you earn because you might – God forbid – find yourself in Ed McMahon’s situation. He owes $664,000 in mortgage payments and got foreclosed on. Actor Stephen Baldwin and musician Tom Petty share this problem. Both have filed for bankruptcy at one point in time.

Whether you make millions or thousands, spending less money than you earn is a cure for many financial problems that people encounter.

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Melissa Dean writes for Credit Cards Canada, a blog offering an unbiased perspective on credit cards in Canada.