If you look around you will see, even with a recession drawing nearer and the credit crunch backlash, there are plenty of great credit card offers available. These offers are aimed at attracting new users or  encouraging existing ones to transfer their debt to a new lender.

Now is a good time for you to review your current credit card arrangements. Before you start looking for deals, get clear about your purchasing and payment habits. Think carefully about your reasons for wanting a new card, this will help you to choose wisely.

Do you pay off the full amount owed each month? If you do, then a card that offers rewards or cashback is likely to suit you.

When your credit card bill arrives, do you pay interest each month? A card that offers you a good deal on purchases is likely to be right for you.

Do you want to reduce existing card debt? A card that offers you the lowest deal on balance transfers for a number of months could be just what you need.

Once you are clear about which of the broad categories you fit into, you can look around for a deal that is right for you.

A friend of mine, recently received an anniversary 0% APR offer on a credit card. She used the offer to clear her bank overdraft. This gave her a year to pay off an overdraft with a high rate of interest, now paying no interest at all. Her bank is pleased, she has put cash into her account. It didn’t matter that it took the form of a balance transfer.

A word of caution

I learned the hard way about balance transfers. If you are transferring a balance, do not use the card under any circumstances to make purchases. Ever! Purchases attract a different interest rate and will cost you dearly.

If you balance transfer, the lender decides which part of your debt will be paid first. You can be sure, the decision will be the interest-free debt first.

There is no reason you should be paying interest on credit card debt. There are many places you can go to get free, impartial information about the latest and best deals. Don’t delay, go find yourself a deal that’s right for you – get your cards changed now.

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I have now got that big loss out of the way, the one entrepreneurs talk about – The Big Learn. I lost a lot of money in a misadventure. It wasn’t even fun. It was enough money to pay off my mortgage and have lots left over! I’ve got over the shock of it, but it did damage my confidence in myself as a business woman, somewhat.

Over the last while, I’ve seen our business reflect that loss of confidence. It’s meant earning less and therefore, paying ourselves less. Belts were tightened and spending reduced. Now, I find myself back in debt. Not huge, but debt none the less. Of course, I have more stuff than last time I was in debt and my net worth has gone up a lot, but that didn’t make the feelings go away.

I started to feel less of a person, less substantial. I had a balance on my credit card I couldn’t clear. I went to pay some off it in the bank and they said they had an interest free deal going on. I didn’t want to waste my time or get turned down. I told them I was unlikely to get a card from them at the moment. I live in a small town and I know the people in the bank. They persuaded me to give it a try, so I did.

I am running an overdraft at the moment and they could see my account hadn’t had it’s usual, healthy flow, for a while. I do have a second account that I run my rental property through, but about the same goes in as out each month. So I braced myself for the no. I was shocked with the results. First, the clerk told me I had a good account with them. Then she offered me a card with £13,125 limit on it! That’s about $26,000. She also told me I could have a loan if I wanted it, immediately. Another £7,000. I politely declined, that but got the card. I never swap short term debt for long term, unless I really have to. When I start to earn again, it will be paid off quickly.

The net result of my visit to the bank was a saving of about £75 per month in interest fees. That was excellent in itself, but the real benefit was in how I felt. I walked out of the bank feeling like I was worth something again. I know that sounds like nonsense, because it was all loans and I will only use just what I need, nothing more.

Even thought there’s a credit crunch on, I am worthy of loans and considered financially sound. I had to negotiate a deal later that day – the extra I made on it, because of how I felt, will pay off the card before the interest free period expires!

If you’re in the situation I was the first time I was in debt, it’s a grind. You will either get through it with long term discipline or learn to make more money and get it gone faster. The second time around is so much easier. It’s been done before. People thought the 4 minute mile was impossible until Roger Bannister did it. After him, there was a flood of people doing it. It’s the same with debt – I promise. If you know your credit rating is ok, apply for a loan every now and then. Don’t take it, but it sure feels good!

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I know a simple way that can help you feel good about you debt. No matter how big your debt, no matter how long it is going to take you to clear it, you can feel good about it…

Simply, live with an attitude of gratitude.

Make a conscious effort every day to find something to be grateful for, about your debt. Does that sound challenging? For some of you it might be, given the pain and anxiety that can come from being in debt.

Take a pen and paper, sit quietly for 10 minutes and think about the things you could be grateful for around your debt.

I remember the first time I came across this idea. I thought, “that’s silly, how is it going to make me feel good about my debt?” I decided to give it a go -after all I had nothing to lose. Here are some of the things i was able to feel grateful for.

• My outrageously high telephone bill – because it meant I had been talking to people I loved.
• My electricity bill – because of the warmth and shared cups of tea I’d had.
• My friend who listened without judging when I told her I was in debt.
• The clothes on my back.
• The home I live in

My list wasn’t long. But the idea of being grateful about that big ugly debt I had, helped me get things into perspective. Sure, I had created the debt. For the most part, I’d had a lot of fun doing it. There was no merit in beating myself up about how I’d got there. Instead, I focused on what I had got right – I had faced up to my responsibilities and was taking action to clear it.

I realised gratitude was good for me. I felt joy again, my negative self talk improved dramatically. I found I didn’t worry as much. I stopped feeling bitter and resentful about things. I also noticed I attracted different kinds of people into my circle; people who were more positive and upbeat about life.

Living in gratitude is a choice; it takes practice but it become easier over time. I have so many things to be grateful for and I begin each day with thanks.

Go on, give thanks for you debt and watch things around you change.

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Debt is extremely easy to accumulate and just as hard to pay off. Indiscriminate usage of credit cards, frivolous spending and high interest rates have led to a large number of Americans steeped in debts that leave them wringing their hands in despair. In extreme situations, when debtors feel that absolutely cannot pay off their debts, there is one option left to them to wipe away the money they owe and start on a clean slate – filing for bankruptcy.
There are two common chapters under which an individual can file for bankruptcy -

• Chapter 7: This process involves the liquidation (conversion to cash) of all property that the debtor owns (some kinds of property may be exempt from the liquidation process), with the proceeds going to settling his/her debts. A court-appointed trustee handles the sale and repayment aspects. There are some kinds of debts that are dischargeable under Chapter 7. This is the most common form of bankruptcy filed in the USA.

• Chapter 13: This option is suitable if the debtor has a steady income and is confident of paying back his/her debts within a certain period of time with some help from the court. The repayment process is carried out over 5 years under court supervision, usually with a cancellation of the interest owed. A detailed plan is drawn up and agreed upon by the creditors, the debtor and the court. The debtor is obliged to follow the plan religiously till his/her debt is paid off in its entirety. This form of bankruptcy is sometimes better than Chapter 7 because it provides for a full discharge under certain conditions if the debtor has paid back his/her debts according to the plan.

Filing for bankruptcy is equivalent to sounding the death knell on your credit history, so think long and hard before you resort to this course of action. Regaining a solid footing with the credit bureaus after you’ve been declared bankrupt is a long process that entails a combination of efforts designed to improve your credit history. Try alternatives like earning more money, consolidating your debt or taking out loans at lower rates to repay outstanding and pressing debts before you throw in the towel.
The process of bankruptcy is complicated and varies from person to person and state to state. Consult a lawyer or an expert in the field before you make a decision.

By-Line

Sarah Scrafford is an industry critic, as well as a regular contributor on the subject of entrepreneurship. She invites your questions, comments and freelancing job inquiries at her email address:

This post is featured in the Carnival of Personal Finance at Moolanomy

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The weight loss industry is a huge $£multi-billion success, launched on the back of our inability to lose weight. We’re surrounded by images showing the latest celebrity who’s lost weight and stories about the latest diet, guaranteed to shift those unwanted pounds.

It’s an industry that taps into our dreams, our desire to lose weight, our longing to be that perfect size, the perfect weight. As we read the ads telling us about the latest miracle diet, inside, we secretly hope that we’ve found ‘the one’. We know there is no magical cure, yet somehow as we part with our money, we cross our fingers and hope, maybe this time, it will be different.

The debt industry (like the diet industry) has grown at an incredible rate with their advertising aimed at our deep desire, our wish to be debt free. There are now thousands of companies offering a myriad of solutions, a variety of quick fixes promising to help us clear our debts.

In truth, obesity and debt are both situations that need fixing, they are a result of over indulgence on our part. We’ve put on weight because we’ve taken in more calories than we’ve used. We’ve got into debt because we spent money we didn’t have.

Despite all the promises, the truth is there is no quick fix. But, you can lose weight and you can get out of debt.

These simple tips will help you on your way, whenever you are ready to lose those unwanted pounds or clear that debt.

Step 1 Ask yourself

• Why do I want to lose weight/get out debt?
• Who do I want to lose weight/get out of debt for?
• How much weight/debt do I want to get rid of?

Step 2 Create Your Plan. Decide when you will begin your weight loss/debt reduction plan. Take into account these things when planning;

• The foods you can’t resist/The items you just have to have i.e. the ones that will make you take out your credit card
• The time of day when you feel most likely to overeat or overspend
• The situations that will make you over eat or overspend
• Identify what types of exercise you like to do and then plan to do it.
• Identify what will keep you on track in terms of people, resources, inspirations.
• Set Short term goals, decide what you need to do each day, each week, each month?
• Identify the things/people that will keep you motivated and inspired.
• when putting these elements into your plan remember creating the plan is part of the process. Make the plan fun to look at and use, make it something you want to go and look at each day.

If you have any difficulty providing the information in step 2, you may find it useful to keep a journal for at least a week. If you are planning to lose weight write down all details relating to what you ate, how much and when. I would also recommend that you make a note of the emotions you felt when eating food. If you are planning to reduce your debt, in your journal write down how much you spent, what you bought, who was with you, describe the emotions you were you feeling when you made your purchase.

When you’ve gathered the information in your journal go back and answer the questions in step 2 before you go any further.

Step 3 Communicate

• Tell the people who matter to you what you are doing, and elicit their support.
• Identify people who will help you to stick to your plan and then tell them what you need from them.
• Are there people around you who are who are likely to steer you away from your goals? If yes, work out what you need to do to stop them sabotaging your efforts.

Step 4 Away you go

• Put your plan into action.
• Celebrate your successes along the way.

Whilst it was easy to put on weight/get into debt, it takes a lot more effort to correct the situation. Willpower, discipline and focus are needed and so too is fun. This change in habits is not a temporary thing, it’s for life. Take it one day at a time, if you stumble, pick yourself up and get back to your plan.

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